Europe is Not Ready for Ban on Russian Gas Supplies, Head of Austrian Fuel Company OMV Says

Previously, several European nations noted they can pay for Russian gas in rubles, while EU Commissioner for Energy Kadri Simson stated that conversion mechanism proposed by Moscow violates EU sanctions.

According to the head of the Austrian corporation OMV, a ban on Russian fuel would result in a crisis in European industry and its economy.

“I don't think that today we are ready for an embargo. Unless we are ready to accept the consequences. Because one thing needs to be clearly understood: our gas supply is provided not by our own production in Europe, but by supplies from Russia. We have created a task force on gas to see how we can contribute to deliveries," OMV CEO Alfred Stern told Kurier newspaper.

This comes just a day after European Commission President Ursula von der Leyen announced that the bloc plans to impose new round of sanctions against Moscow on Wednesday, including an embargo on Russian oil imports in Europe. However, the European representatives did not reach an agreement on possible restrictions.

A pump jack is silhouetted against the setting sun in Oklahoma City on March 22, 2012.

© AP Photo / Sue Ogrocki

Previously, French President Emmanuel Macron also addressed possible sanctions on Russia's oil and gas supply to Europe, saying are not being considered at the moment.

Over the past months, the European countries have imposed several rounds of sanctions against Russia, citing the special operation in Ukraine. As a response, in April, president Vladimir Putin signed a decree mandating that all contracts for pipeline gas deliveries to companies from "unfriendly nations" must be paid in the Russian national currency.

On 27 April, Russian energy giant Gazprom suspended gas supplies under contracts with Bulgarian company Bulgargaz and Poland's PGNiG due to their rejection of the new payment procedure.