OMV terminates contract with Gazprom after gas supplies suspended

MOSCOW. Dec 12 (Interfax) - OMV Gas Marketing & Trading GmbH has decided to immediately terminate its contract for gas supplies to Austria with Gazprom Export LLC, a subsidiary of Russian gas giant Gazprom , OMV reported.

OMV said the contract was terminated due to "fundamental breaches of contractual obligations by Gazprom Export."

Gazprom Export halted gas deliveries to OMV as of November 16, OMV said. The contract was for about 6 billion cubic meters of gas per year.

OMV announced a month ago that it had won an arbitration ruling against Gazprom awarding it 230 million euros, which the Austrian company decided to offset against invoices under its current supply contract for Russian gas. Under the conditions for Russian gas exports to unfriendly countries, supplies must be suspended if payment is not made in full, which is what happened.