UK and European gas prices have surged to almost a year's high after a major supplier cautioned that Russian natural gas supplies may be curbed after it won an arbitration decision.
European TTF gas prices rose over 5% on Thursday morning to above €45 per megawatt hour for the first time since November 2023, up fro €41 a week ago, while UK gas prices rose to £114.89 per therm, also close to a one-year high, up from £99 at the start of the month.
Austria's national gas company, OMV, said there may be a "potential halt of gas supply" from Russia after it was victorious in an arbitration ruling against Russian supplier Gazprom under International Chamber of Commerce rules.
Following the ruling, which was related to "irregular" gas supplies in 2022, OMV said it would offset the amount against invoices on its contract with Gazprom.
This might lead to "a deterioration of the contractual relationship", OMV admitted, warning that this might lead to a "halt" of gas supplies from the Russian company.
"Austria can and will manage without Russian gas," energy minister Leonore Gewessler said in a social media post. "Nevertheless, it is clear that a sudden interruption in supply could cause tension on the gas markets."