Austria’s quest to reduce dependency on Russian gas: navigating the economic and political challenges

The Energy Minister Leonore Gewessler of the Green Party has proposed plans to reduce Austria’s dependence on Russian gas. According to the plan, all EU states have agreed to phase out Russian gas by 2027 and Ukraine has announced that it will suspend pipelines crossing its territory after the gas transit contract expires in early 2025. Currently, 98 percent of Austria’s gas imports come from Russia, decreasing to 97 percent in January 2024 and 87 percent in February.

However, Minister of Economic Affairs Martin Kocher (ÖVP) has issued a warning about the economic consequences of this plan. He emphasized the importance of ensuring a smooth transition to alternative gas sources without causing a gas shortage. Kocher also pointed out that there are concerns about the practical implementation and potential challenges faced by gas providers in transitioning away from Russian gas.

The Greens have presented a legislative package to the government partner ÖVP that includes amendments to the Gas Industry Act, the Gas Diversification Act, and the Energy Steering Act. The package aims to require gas suppliers in Austria to demonstrate an increasing proportion of non-Russian natural gas, starting with 40 percent in the first year. While the goal of phasing out Russian gas is agreed upon, there are debates and concerns among various stakeholders in Austria about how this can be achieved practically and what challenges may arise for gas providers.

The ÖVP energy spokeswoman Tanja Graf rejects the legislative package proposed by the Greens and urges negotiations with Ukraine to continue gas deliveries from Russia beyond the end of the current contract. The Industrial Association (IV) has also called for a consortium to bring Russian gas to Austria through Ukrainian transit pipelines. These discussions have sparked debates among various stakeholders in Austria about how best to diversify their energy sources and reduce dependence on Russian gas while minimizing economic consequences and potential disruptions.

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