04:21Concerns over economic stability have been raised amid discussions by the Austrian Federal Government over a possible withdrawal from contracts for the supply of natural gas from Russia's Gazprom.
After Austrian dependence on Russian gas increased over the past two years from 80 to 98 per cent, a special commission has been tasked with deciding whether to suspend Austrian oil and gas company OMV's contract with Russia's Gazprom.
Former managing director of OMV Gas Otto Musilek shared his insight into the matter, with footage showing Gas Connect Austria's Baumgarten gas hub which is a crucial transit point for deliveries of Russian gas to Europe.
"Austria was the first country to conclude a contract with the former Soviet Union, and we have had very good experiences so far," explained Musilek, who went on to explain the immediate impact of suspending Russian gas contracts.
"There is no question that this will increase gas prices, and, above all, that industry will suffer as a result," he noted, adding that: "It will be a disadvantage for industry and the economy and economic growth. And all the forecasts are sure to be overturned and revised."
Musilek also noted there is uncertainty about whether a 'unilateral act' by Austria to suspend supplies may still result in a build-up of debt, since 'Gazprom will not disappear' and 'Russia will not disappear either'.
The former managing director also explained why claims that Austria is one of only three countries that still purchase Russian gas are 'fundamentally wrong'.
"Russia is now the largest supplier of LNG - liquefied natural gas - to Europe. It is then simply diverted via Belgium, Germany, etc. So Russian gas still comes to Europe, and not just to Austria, Hungary and Slovakia," he said, adding that it arrived in Europe 'via Turkey, via the TANAP pipeline and the Trans-Adriatic pipeline to Italy'.
"We cannot trace the molecules. That's the problem, that's a fact," said Musilek.
"I am of the opinion that such sanctions, regulations and bans are useless. The gas will flow, Russia will produce and will bring it to the market via some means," he concluded.
Earlier, OMV warned that it may be forced to suspend gas payments to Russia's Gazprom due to legal issues believed to be related to arbitration proceedings after Gazprom cut off gas supplies to parts of Europe. The cut impacted companies including Germany's Uniper, VNG and Sefe, Italy's Eni and France's Engie.
Meanwhile, as of the end of August, gas reserves in European storage facilities had reached 90 per cent. This figure was achieved two months ahead of schedule, according to media reports.
'Russian gas still comes to Europe' - Expert warns Vienna of economic impact of 'useless' potential suspension of Gazprom supply contract
Concerns over economic stability have been raised amid discussions by the Austrian Federal Government over a possible withdrawal from contracts for the supply of natural gas from Russia's Gazprom.
After Austrian dependence on Russian gas increased over the past two years from 80 to 98 per cent, a special commission has been tasked with deciding whether to suspend Austrian oil and gas company OMV's contract with Russia's Gazprom.
Former managing director of OMV Gas Otto Musilek shared his insight into the matter, with footage showing Gas Connect Austria's Baumgarten gas hub which is a crucial transit point for deliveries of Russian gas to Europe.
"Austria was the first country to conclude a contract with the former Soviet Union, and we have had very good experiences so far," explained Musilek, who went on to explain the immediate impact of suspending Russian gas contracts.
"There is no question that this will increase gas prices, and, above all, that industry will suffer as a result," he noted, adding that: "It will be a disadvantage for industry and the economy and economic growth. And all the forecasts are sure to be overturned and revised."
Musilek also noted there is uncertainty about whether a 'unilateral act' by Austria to suspend supplies may still result in a build-up of debt, since 'Gazprom will not disappear' and 'Russia will not disappear either'.
The former managing director also explained why claims that Austria is one of only three countries that still purchase Russian gas are 'fundamentally wrong'.
"Russia is now the largest supplier of LNG - liquefied natural gas - to Europe. It is then simply diverted via Belgium, Germany, etc. So Russian gas still comes to Europe, and not just to Austria, Hungary and Slovakia," he said, adding that it arrived in Europe 'via Turkey, via the TANAP pipeline and the Trans-Adriatic pipeline to Italy'.
"We cannot trace the molecules. That's the problem, that's a fact," said Musilek.
"I am of the opinion that such sanctions, regulations and bans are useless. The gas will flow, Russia will produce and will bring it to the market via some means," he concluded.
Earlier, OMV warned that it may be forced to suspend gas payments to Russia's Gazprom due to legal issues believed to be related to arbitration proceedings after Gazprom cut off gas supplies to parts of Europe. The cut impacted companies including Germany's Uniper, VNG and Sefe, Italy's Eni and France's Engie.
Meanwhile, as of the end of August, gas reserves in European storage facilities had reached 90 per cent. This figure was achieved two months ahead of schedule, according to media reports.
Concerns over economic stability have been raised amid discussions by the Austrian Federal Government over a possible withdrawal from contracts for the supply of natural gas from Russia's Gazprom.
After Austrian dependence on Russian gas increased over the past two years from 80 to 98 per cent, a special commission has been tasked with deciding whether to suspend Austrian oil and gas company OMV's contract with Russia's Gazprom.
Former managing director of OMV Gas Otto Musilek shared his insight into the matter, with footage showing Gas Connect Austria's Baumgarten gas hub which is a crucial transit point for deliveries of Russian gas to Europe.
"Austria was the first country to conclude a contract with the former Soviet Union, and we have had very good experiences so far," explained Musilek, who went on to explain the immediate impact of suspending Russian gas contracts.
"There is no question that this will increase gas prices, and, above all, that industry will suffer as a result," he noted, adding that: "It will be a disadvantage for industry and the economy and economic growth. And all the forecasts are sure to be overturned and revised."
Musilek also noted there is uncertainty about whether a 'unilateral act' by Austria to suspend supplies may still result in a build-up of debt, since 'Gazprom will not disappear' and 'Russia will not disappear either'.
The former managing director also explained why claims that Austria is one of only three countries that still purchase Russian gas are 'fundamentally wrong'.
"Russia is now the largest supplier of LNG - liquefied natural gas - to Europe. It is then simply diverted via Belgium, Germany, etc. So Russian gas still comes to Europe, and not just to Austria, Hungary and Slovakia," he said, adding that it arrived in Europe 'via Turkey, via the TANAP pipeline and the Trans-Adriatic pipeline to Italy'.
"We cannot trace the molecules. That's the problem, that's a fact," said Musilek.
"I am of the opinion that such sanctions, regulations and bans are useless. The gas will flow, Russia will produce and will bring it to the market via some means," he concluded.
Earlier, OMV warned that it may be forced to suspend gas payments to Russia's Gazprom due to legal issues believed to be related to arbitration proceedings after Gazprom cut off gas supplies to parts of Europe. The cut impacted companies including Germany's Uniper, VNG and Sefe, Italy's Eni and France's Engie.
Meanwhile, as of the end of August, gas reserves in European storage facilities had reached 90 per cent. This figure was achieved two months ahead of schedule, according to media reports.