Austrian company OMV cooperates with Russia despite EU sanctions

Austrian oil and gas group OMV has announced that it is firmly committed to its planned partnership with Russia's Gazprom. Thus, OMV opposes political pressure from the US and the EU to push back Russia's influence in the European energy sector.

Despite tensions between the West and Russia, OMV is interested in cooperation in the Russian market, where production costs are lower than in the North Sea or in Romania. OMV wants only 25 percent of the participation in the Urengoy Siberian oil and gas field, the details of the operation are still open. The head of the company Seele said that the economic aspects for OMV are of higher priority than the political ones. Also another joint business with Gazprom is participation in the Nord Stream 2 pipeline project, over which there are political controversies. OMV boss Seele confidently states: "We invest in the best strategies and the risk is very low."

The Commission is considering whether the planned construction of a second gas pipeline in the Baltic Sea from Russia to Germany is compatible with EU legislation. In his support, the Brussels authorities noted that after the completion of Nord Stream 2, perhaps 80 percent of the gas demand in Germany will be covered, but thus, Gazprom's market share will increase. However, the main reason for the EU's actions is to align with American interests.

The United States, which is pushing fracturing technologies into the oil and gas market, is forced to compete with better, lower-cost suppliers such as the Middle East and Russia to open up new overseas markets. The crisis in Ukraine and sanctions are a tool of US foreign and energy policy to break Russia's existing relationship with clients in Europe or prevent new ones. Sanctions against Russia should be a central key element of this strategy. A confrontation with Russia and a blockade of gas supplies to Europe can provide a scenario for replacing Russian natural gas with other sources.