The image of the deep bow of the then Austrian Foreign Minister, Karin Kneissl, to the Russian president, Vladimir Putin, went around the world in August 2018. Kneissl was celebrating her wedding in Gamlitz (Styria, in the south of the country) , with the Russian leader as a star guest. He gave her some expensive earrings and they danced together in front of the guests. The photograph illustrates the closeness of Austria to Russia in years in which its political leaders maintained cordial relations and frequent visits were exchanged, while business also flowed between both parties. Today Kneissl lives in Russia.
The Russian invasion of Ukraine in February 2022 was a blow to all of Europe, but in Austria (and Germany) it also disconcerted many who considered that they understood to Putin and highlighted the neutrality of the Alpine country, always with a look to the East, as a useful instrument to build bridges with Russia. A few weeks ago, on the eve of the general elections next Sunday, and after the recent disclosure of several espionage cases in which different Austrian citizens are suspected of spying for Moscow, the Government agreed on a new security strategy that sees Moscow as a danger (previously described as a strategic partner of the EU) and promises to end the enormous dependence on Russian gas in 2027 (the objective set by Brussels).
The Austrian Government unequivocally condemned the invasion – “we are militarily neutral, but not morally,” underlines the conservative Chancellor, Karl Nehammer -, the country has taken in, like others, tens of thousands of fled Ukrainians and adopted sanctions against Russia, and although it does not participate in the delivery of weapons to kyiv, it does not torpedo the agreements like Viktor Orbán’s Hungary. However, Nehammer still tried to mediate in April 2022, with the war already started, when he made a surprise trip to Moscow and met with Putin. He left crestfallen and without results.
“Due to the history since the end of World War II, it could be said that the relationship between Austria and Russia is unusual by Western European standards,” explains Wolfgang Müller, professor at the Institute of Eastern European History at the University of Austria, in his office. from Vienna. The country, once the Nazi regime was defeated, was occupied by the victors until 1955, and “neutrality was the political price of the Soviet agreement to withdraw its troops,” he points out. From then on, Moscow deployed “very skillful political communication” to use Austria “as an example of how good relations between the Soviet Union and a capitalist country could be if it remained neutral and did not join NATO.” The Austrians ended up linking that neutral status with “the peace and prosperity” that followed the war, even though “that connection does not really exist.”
The desire “of the political elites” to maintain good relations with Russia continued even after the illegal annexation of Crimea by Russia in 2014. “When President Vladimir Putin came to Vienna at that time, he was courted by Christian Democrat (ÖVP) politicians. and socialists (SPÖ)”.
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But as the invasion of Ukraine began in 2022, suspicions in Europe about Austrian interests linked to Russia increased and several former senior officials, both conservatives and socialists, hired by Russian gas and oil companies, began to leave those positions. Kneissl, who as an independent was a minister for the quota of the far-right FPÖ in the first coalition government of the Christian Democrat Sebastian Kurz, considers herself persecuted for her affinity with Putin and has moved to Russia, where the Russian leader has entrusted her, among others things, promote the protection of the Siberian tiger, according to Austrian media. Since the invasion of Ukraine, several cases of espionage for Russia within Austria have also emerged, one especially serious because it involves a member of the internal intelligence services.
Unlike Sweden and Finland, which have entered NATO in the face of the Russian threat, the Austrians maintain their neutrality and the parties do not debate it. Around 80% of the population (about nine million inhabitants) supports it. The FPÖ, which leads the polls to win the parliamentary elections on Sunday, “has incorporated it into its ideology and presents itself as its strongest defender”, which is also taking the opportunity to accuse the EU of being a warmonger and rejecting sanctions against Russia.
In a Eurobarometer last spring, the majority of Austrians were generally satisfied with the EU’s reaction to the Russian invasion, in line with the EU27 average, but support is lower when it comes to financial aid to kyiv and economic sanctions.
83% of gas comes from Russia
One of the possible reasons is that the Russian shadow continues to be long, especially on the energy issue. According to data from last July, the country still imported 83% of its gas from Russia. “Austria has become massively dependent on Russian gas supplies in recent decades,” stated in a note the Ministry for Climate Protection and Energy, whose head, environmentalist Leonore Gewessler, considered the decision to extend in 2018 “wrong.” until 2040 the supply contract of the Austrian ÖMV with the Russian Gazprom. The signing was attended by the then chancellor Sebastian Kurz “and also Putin,” says the expert, who criticizes that the Austrian governments have left this issue “in the hands of a single company, ÖMV.” “A very unrealistic, naive and, in fact, also dangerous for security policy has been followed here. “It has been a criminal negligence of the security policy,” he highlights.
The beginning of Austrian dependence dates back to 1968, when ÖMV signed the first contract of a Western country with the former Soviet Union to receive Russian gas.
Gewessler has promoted a law on the diversification of supply sources and the obligation for companies to gradually disengage from Russian gas, but has not achieved its approval in this legislature due to the obstacles of the Christian Democrats of the ÖVP, the majority partner of the coalition of Government. Fear of rising prices and business complaints about certain measures are holding back the conservative approval. Another law, promoting biogas, has also not reached its conclusion in time before the elections. The gas transit agreement between Ukraine and Moscow expires in December, and at the moment there are no signs of a renewal. Perhaps turning off the tap will speed up the reforms.
Economic exchange since the war has been reduced. Previously, Russia “was an important market for the Austrian economy, with exports worth almost €2 billion in 2021,” according to the Austrian Ministry of Economy. These have fallen to 1.3 billion euros in 2023. Wolfgang Müller highlights that “in general, except in the case of gas, the economic importance of Russia for Austria is overestimated.” At its best, around 2013, Moscow was the tenth trading partner. The other side of the coin is that “there have been several waves since 2014 in which Russia has been among the largest foreign investors in Austria,” not as “a state-led strategy, but rather by oligarchs who wanted to get their money out because they feared “an economic crisis would break out in Russia.”
The number of companies with subsidiaries or representation in Russia (650 before the war) has also decreased by between 20% and 30%. The Government says that Russian laws make it increasingly difficult for companies to exit and the sale is subject to permits. One of the firms that has encountered these problems is the Raiffeisen banking group, focused on Eastern countries and with a juicy business in Russia. A court resolution in Moscow has blocked the entity’s intention to sell its Russian business.
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