As Austria approaches its general election next Sunday, the incoming government will face mounting pressure to reduce the country’s heavy reliance on Russian gas while addressing a faltering economy. Current opinion polls suggest no party will secure an outright majority, with the far-right Freedom Party (FPO), known for its pro-Russian stance, leading by a narrow margin.
Since Russia’s invasion of Ukraine in 2022, the European Union has accelerated efforts to replace Russian gas imports. However, alternative energy sources tend to be more expensive, exacerbating existing inflationary pressures from the pandemic and the ongoing war. Austria, which currently imports 83% of its gas from Russia, has been criticized by other EU nations for its continued dependence.
Stefan Schiman-Vukan, a senior economist at the Austrian Institute of Economic Research, emphasized the political pressure on Austria to reduce its gas consumption, stating, “Other countries aren’t happy Austria is still consuming such large volumes of Russian gas.”
The EU has pledged to phase out Russian gas by 2027, a goal supported by Austria’s Greens-led energy ministry, which aims to accelerate the transition. Despite these efforts, Austria’s reliance remains stark in comparison to the broader EU, where the share of gas imports from Russia has plummeted to 15% in 2023.
The Austrian People’s Party (OVP), led by Chancellor Karl Nehammer, has also committed to diversifying energy sources. The energy ministry has highlighted initiatives to source gas from Norway and other suppliers, noting that Austria’s gas storage facilities are over 90% full and that the country has the import capacity to rely on non-Russian sources through Germany and Italy.
The FPO has maintained that Russian gas should continue to play a role in Austria’s energy mix, although its support appears to be waning, currently polling at around 27-29%. A coalition with the OVP seems likely, which could shift the focus towards distancing Austria from Russian gas.
Whoever takes power will need to tackle an economy projected to shrink by 0.7% this year, marking a second consecutive year of contraction. The next government faces a dual challenge: ensuring energy security while navigating economic difficulties.