The Austrian government issued a phase one warning regarding natural gas supplies, shortly after Germany did the same on March 30. According to RT, Vienna has made the move because it fears gas shortages if Russia resolutely demands payment in rubles, instead of USD or euro, due to Western sanctions.
The first phase warning means specific and reliable signs that gas supply could deteriorate, the Austrian Ministry of Climate said, adding that it would monitor the situation. The Austrian press said the country's gas reserves are currently at 13% capacity - the average for the whole season.
"Everything will be done to ensure gas supplies to Austrian households and businesses," Prime Minister Karl Nehammer said on 30 March. If there is a disruption, businesses will be encouraged to seek alternative solutions. Gas distribution will not take place until phase three, according to the government's announcement.
Austria's announcement comes hours after Germany declared a similar state of emergency in the first phase, fearing a disruption of natural gas supplies as Russia's "unfriendly countries" begin paying in rubles as the clock ticks near the deadline.
Germany and the rest of the EU have been designated by Moscow as "unfriendly states" for sanctioning Russia over its war in Ukraine. Moscow has said that if Russia cannot accept gas payments in euros or USD, it will be rubles or not sell gas.
When EU leaders said that paying in rubles would violate the contract, Russia replied that this was due to their own sanctions. Kremlin spokesman Dmitry Peskov said Russia has no intention of supplying Europe with gas for free.
Germany's top industrial associations have warned that gas disruptions could lead to a "rapid collapse of industrial production chains in Europe - with consequences around the world".
On March 30, Russian President Vladimir Putin and German Chancellor Olaf Scholz discussed the issue, with Moscow and Berlin announcing somewhat contradictory results.
After the phone call, the German side said that President Putin agreed that payments at the present time would continue in one of two Western currencies, the US dollar or the euro, to Russia's Gazprombank - a bank not sanctioned by the EU. Gazprombank will then convert the payments into rubles.
Moscow, meanwhile, said President Putin explained to Scholz that the Kremlin is demanding payment in rubles "because the Russian Central Bank's foreign exchange reserves have been frozen by EU member states and this is a violation of international law." However, Mr. Putin assured Mr. Scholz that converting currency would not lead to less favorable contract conditions for German importers.
Germany depends on Russia for more than half of its gas supplies and some of its oil imports. Berlin has been less enthusiastic about sanctions on Russian oil and gas than some of its EU partners. Chancellor Scholz described Russian energy as a "weakness" for the existence of the German economy.
In what is considered the strongest move to show that Russia may be preparing for a more severe response to Western sanctions, Chairman of the Russian State Duma (lower house) Vyacheslav Volodin said on March 30 that almost all of Russia's energy and exports could be priced in rubles.
Spokesperson Dmitry Peskov said: "This is a solid idea that should be implemented." Mr. Peskov said that the role of the US dollar as a global reserve currency has been affected and that the move to value Russia's largest exports in rubles will be "for our benefit and that of our partners".
