Austria’s ruling coalition has decided to gradually phase out Russian gas by 2027 as part of the country’s new security strategy. The Kurier newspaper reported that the latest estimates show Russian natural gas accounts for 80–90% of the gas flowing through Austria’s pipelines. Last year, Austria paid around 4 billion euros to Russia’s Gazprom. According to the Austrian government, this dependency threatens the economy, and gas prices for households and industries will soar if supplies are cut off.

The government stated that the risk of price hikes needs to be mitigated “by phasing out Russian gas in a planned manner.” In June 2018, an agreement was signed to extend the existing contract between Gazprom Export LLC and Austria’s OMV for the supply of Russian natural gas to Austria until 2040. In July, Austria’s Ministry of Energy announced it would review the contract between Gazprom and OMV for a possible exit. The contract is based on a “take-or-pay” principle, meaning OMV is obligated to pay even if it doesn’t receive the gas.