Austria able to cope with Russia sanctions - economy minister

Petro Welt Technologies AG

02/08/2014 13:02

VIENNA, Aug 2 (Reuters) - Austria will feel a pinch but be 
able to handle European sanctions against Russia over its role 
in Ukraine's political crisis, Economy Minister Reinhold 
Mitterlehner said. 
    Companies in the high-tech and agricultural sectors would 
feel the impact the most, he told broadcaster ORF in an 
interview aired on Saturday. "But overall I think we will cope 
with the sanctions," he added. 
    Mitterlehner did not specify which companies might be hit by 
the sanctions formally adopted by the European Union on 
Thursday, which include export bans on advanced oilfield 
equipment.  
    Shares in Cat Oil AG  O2C.DE , a Vienna-based oil and gas 
field service contractor, fell on Friday after it said Russia 
sanctions could slow its growth.  ID:nF9N0NY06U  
    The Austrian steel group Voestalpine  VOES.VI  is in talks 
to supply heavy steel plates for the second pipeline of 
Gazprom's  GAZP.MM  giant South Stream gas transit to Europe.  
    It was part of the OMK consortium that won work for the 
first South Stream pipeline.     
    Mitterlehner also did not say whether limits on exports of 
farm products were new or referred to bans from earlier this 
year on certain dairy and meat products amid hygiene issues 
cited by Russia. 
    He played down talk that the political crisis could boost 
prices for Russian energy.  
    "I have seen the Russian statements but I expect that, 
(because) we have long-term contracts, it will not be so easy to 
raise prices," he said, stressing the mutual dependency of 
Russia and Europe on reliable energy supplies. 
    "Secondly, a unilateral price increase will lead to and 
accelerate thinking about alternatives to diversify, so I see 
the threat of operating on the price side more as a verbal 
threat than a realistic approach."    
    Russia accounts for 2.8 percent of overall Austrian exports, 
he said. "This is important but doesn't mean the world." 
 
 (Reporting by Michael Shields; Editing by Tom Heneghan) 
 ((Michael.Shields@thomsonreuters.com)(+43 1 531 12 258)(Reuters 
Messaging: michael.shields.thomsonreuters.com@reuters.net)) 
 
Keywords: UKRAINE CRISIS/AUSTRIA