Russian envoy: Austria used gas from Moscow for creating its economy

Russian Ambassador to Vienna Dmitry Lyubinsky has said that the Austrian economy was created on the basis of profitable supplies of Russian gas.

"They get gas under long-term profitable contracts, on which the construction of the Austrian economy has been based for decades <…> with our direct participation," Lyubinsky told TASS.

There is "an abyss" between political statements by today’s Austrian leadership and the reality, the diplomat added.

"When abandoning Russian gas becomes a political goal this is hardly realistic. Austria is located in the heart of the continent, without access to the sea. The shift to liquified natural gas will cause notable expenditures," he explained.

In June 2018, an agreement was signed to extend the existing contract between Gazprom Export LLC and OMV Gas Marketing&Trading GmbH for the supply of Russian natural gas to Austria until 2040.

CEO of OMV Alfred Stern said that the company would continue purchasing Russian gas under the contract as it was not subject to EU sanctions.

The Austrian government has repeatedly said that it wants to cut dependence on Russian gas. According to figures provided by the European Network of Transmission System Operators for Gas (ENTSOG), supplies from Russia accounted for 90% of the country’s total gas imports in October 2023.

In a separate report, Lyubinsky said that the Austrian banking group Raiffeisen Bank International (RBI) comes under “tremendous pressure” due to continuing work in Russia, though some western banks have not left the country either.

"In 2022, according to figures published here, the Russian subsidiary accounted for around 60% of total profit worth 3.6 billion euros. Obviously, the consequences of the Austrian bank’s withdrawal from the Russian market and the loss of serious dividends would not have been painless for Austrian taxpayers," Lyubinsky emphasized.

RBI’s management has repeatedly announced plans to sell its Russian business or form it out of the group without mentioning specific time limits. The process is related to many bureaucratic procedures and the issuance of permits by regulators.