Austria will remain dependent on Russian gas until 2040

Status: 08/05/2023 4:57 p.m

According to a British magazine, Austria is one of “Putin’s useful idiots”. The main reason for this is imported gas from Russia – and the contracts are still valid for many years.

“Vladimir Putin’s useful idiots” – this was the headline of the British magazine “The Economist” and put Austria in second place in the ranking. The magazine was primarily describing an international nuisance that Austria’s Chancellor Karl Nehammer has been trying to sugarcoat since the Russian attack on Ukraine.

Austria has achieved something that no one would have thought. “We have reduced dependence on Russian gas from 80 percent at the beginning of the Russian Federation’s war against Ukraine to 20 percent,” Nehammer said just before Christmas last year.

Putin exported less gas to Austria

That wasn’t wrong, but the decline was due to an attempt by Putin to blackmail. He had temporarily turned off the gas tap, which explains the 20 percent. Most recently, the proportion was back at 60 percent.

Wolfgang Müller from the Institute for Eastern European History at the University of Vienna therefore drew a rather sober conclusion. “Despite all political announcements, Austria’s dependence on natural gas has not been significantly reduced since the beginning of the war,” said the expert.

Austria finances the war against Ukraine

Austria has not yet achieved what Germany had already achieved: down from 55 percent of gas imports from Russia to zero. This means that no more euros or rubles flow to Moscow because of the gas bill – at least not from Germany. From Austria, yes – and according to Müller, that is doubly “useful” for Putin: “On the one hand, Austria becomes dependent, it becomes open to blackmail.” Secondly, through the purchase of natural gas, Austria “of course also finances the war chest of an aggressor”.

590 euros per head for Putin’s war chest

Since the beginning of the war, seven billion euros have flowed from Vienna to the Gazprom account. That might not be much considering the 390 billion total profit Moscow made from oil and gas in the same period. But the Eastern Europe expert Müller calculates that down to small, neutral Austria – that’s 590 euros per capita for Putin’s war chest. Müller says: “A multiple is given to the aggressor and a smaller sum to the victim.”

One billion euros from Austria have gone to the victim, i.e. Ukraine. In addition, there is help for people fleeing and much more. Nevertheless, the label of “Putin’s useful idiots” sticks to Austria.

Why Austria is also useful to Putin

There was the curtsey of the right-wing populist FPÖ Foreign Minister, Karin Kneissl, in front of Putin in 2018 at her wedding. There is Austria’s bad reputation as a luxurious safe house for international oligarchs. And then there is the contract that the state-owned Austrian energy company OMV has with Russia, which is extremely useful for Putin: six billion cubic meters of Russian gas per year at a preferential price, but with a “take-or-pay” clause.

This means that if Gazprom delivers, Austria has to pay – regardless of whether it wants to buy the gas or not. The contract runs for another 17 years, i.e. until 2040. It was extended under the eyes of ex-Chancellor Sebastian Kurz, who was provided by the ÖVP. Vladimir Putin flew to Vienna especially for this.

The Legacy of the Acting Chancellor

The current Chancellor Nehammer, also from the ÖVP, inherited this legacy. To classify him as a “useful idiot” would be unfair. The expert sees it that way too. Müller says the Austrian government has been trying to make things right since the beginning of the war and has worked on the choice of words towards Russia.

But Austria’s continued closeness to Russia is difficult to sugarcoat – the contract on Russian gas for Austria continues to apply.

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