Putin banned Gazprom from buying gas from a joint venture with Wintershall and OMV above the established price

Russian President Vladimir Putin signed a decree on the introduction of special economic measures in the field of gas supplies in connection with the unfriendly actions of a number of states. Document published on the portal of legal information.

According to the decree,Gazprom”and its affiliates cannot fulfill obligations to foreign companies that are associated with countries that commit unfriendly actions against the Russian Federation.

This includes, among other things, gas supplies from areas of the Achimov deposits of the Urengoy oil and gas condensate field and from areas of the Yuzhno-Russkoye field. It is no longer possible to pay for energy supplies at a price higher than that set by the government. In addition, the decree introduces a ban on payment for services related to mining in areas of the Achimov deposits.

It is noted that the Cabinet of Ministers will set the maximum prices and tariffs within 10 days. Economic measures are applied retroactively – from March 1, 2022.

Together with Gazprom, a number of sections of the Achimov deposits of the Urengoy oil and gas condensate field are being developed by the German Wintershall Dea through a joint venture (JV) of Achimgaz and Achim Development. The share of Wintershall Dea in Achimgaz is 50%, Achim Development is 25.01%.

In addition, Gazprom, Wintershall Dea and the Austrian OMV operate the Severneftegazprom JV, which is developing the Yuzhno-Russkoye field. The share of the German company in Severneftegazprom is 34.9%, while the Austrian company owns 24.99%, the rest belongs to Gazprom. In March, OMV announced plans to renegotiate its stake in the Yuzhno-Russkoye field.

In March 2022, the government of the Russian Federation approved list of unfriendly countries. The list includes all EU countries, as well as the US, UK, Japan and Australia. Both Germany and Austria are EU member states.