OMV wins arbitration against Gazprom

The arbitration award handed down on Wednesday evening condemns Gazprom to pay OMV, the Austrian natural gas operator, €230 million in damages in a dispute with Gazprom. However, OMV's victory could backfire. The arbitration award allows OMV to deduct the amount of damages from the bills it pays to Gazprom. Gazprom has indicated that it will stop supplying gas to OMV if the latter does not pay the amounts invoiced in full. This eventuality has pushed up the market price of natural gas, as it would force OMV to find the quantities of gas it needs elsewhere in Europe to supply its customers. The TTF 2025 Calendar was trading late Thursday afternoon at 44 EUR/MWh, compared with 41.9 EUR/MWh at the close on Wednesday evening.