As the war in Ukraine continues, there is an increasing threat of a drastic reduction of Russian gas supply to the European Union (EU). A sudden drop in gas trade between EU countries and Russia could arise from an EU-imposed import embargo, a Russian export embargo or by pipeline malfunction due to the military conflict. Natural gas imports from Russia account for 80% of Austria’s annual gas consumption, and for roughly 38% of the EU’s gas consumption.

This policy brief discusses the likely short-term impacts on the Austrian economy resulting from an immediate import stop of Russian natural gas, as well as possible actions for mitigation and their effects.