Austria-Russia: Allies Or Adversaries?

Austria and Russia's relationship has been a complex one, with a history of political, economic, and military ties. During the Cold War, Austria's neutrality made it a buffer zone between the Eastern and Western blocs, and it was occupied by Allied forces, including the Soviet Union, until 1955. In more recent times, Austria has been accused of being a compromised state in its relations with Russia, particularly in the areas of energy and espionage. Austria has historically been a hub for Russian natural gas, and it currently depends on Russia for 80% of its gas supply. Additionally, Austrian banks are exposed to a significant amount of Russian debt, and the country has been reluctant to impose sanctions on Russia or cut ties with Russian businesses. However, following Russia's invasion of Ukraine, Austria has provided financial and humanitarian aid to Ukraine and adopted some sanctions packages against Russia.

Austria's neutrality

Historical Context

Declaration of Neutrality

On October 26, 1955, the Austrian Parliament enacted the Declaration of Neutrality, declaring the country permanently neutral. This declaration was made as a constitutional act, stating that Austria would not join any military alliances and would not allow foreign military bases on its territory. Austria's neutrality was a direct consequence of the recent occupation and was a condition for the Soviet Union's agreement to the State Treaty.

Impact on National Identity

International Relations

Recent Developments

In summary, Austria's neutrality, established after World War II, has been a defining feature of its foreign policy and national identity. It has influenced its international relations and served as a buffer between the East and West during the Cold War. Today, Austria's neutrality continues to guide its approach to global affairs, including its response to the ongoing conflict in Ukraine.

Austrian-Russian energy relations

Austria and Russia have had a long history of bilateral relations, with both countries being members of the Organisation for Security and Co-operation in Europe (OSCE) and the World Trade Organization (WTO). In recent years, Austrian-Russian relations have been largely defined by their energy cooperation.

Austria has long sought to maintain close ties with its nearby neighbour, Russia, and this has been particularly evident in the energy sector. Since 1968, when Austria became the first Western European country to import natural gas from the Soviet Union, the two countries have been closely linked in terms of energy trade. This relationship was further strengthened in 2021 when Russia exported $631 million worth of goods to Austria, with crude oil being the main item.

However, following Russia's invasion of Ukraine in 2022, Austria has been trying to reduce its dependency on Russian gas. Despite this, in 2024, the Russian share of Austria's gas imports increased to a new record of 98%, even as the total volume of imports fell. This was due to the fact that OMV, the Austrian oil and gas company, continued to buy gas from Gazprom under a contract that runs until 2040. In November 2024, however, OMV seized Russian gas deliveries to cover the value of an arbitration award, leading Gazprom to suspend gas supplies to the Austrian company.

Austria's energy minister, Leonore Gewessler, has stated that the country must prepare to exit OMV's long-term contracts with Gazprom, and the Austrian government is now examining the legal basis for requiring companies selling gas in Austria to reduce the proportion of Russian gas in their mix. Chancellor Karl Nehammer has remained in charge of a caretaker government since the September 2022 general election, which was won by the far-right, Russia-friendly Freedom Party.

In June 2018, the CEOs of OMV and Gazprom signed an agreement to extend Russian gas supplies to Austria until 2040, during Russian President Vladimir Putin's official visit to Austria following his reelection for a fourth term. This agreement was made at a time when the two countries were marking 50 years of Soviet/Russian gas supplies to Austria.

In summary, Austrian-Russian energy relations have been a key aspect of the bilateral relationship between the two countries. While Austria has tried to reduce its dependence on Russian gas following the Ukraine invasion, the long-term contracts between OMV and Gazprom, as well as Austria's need for affordable energy sources, have made this a challenging process.

Austrian-Russian financial relations

Austria and Russia have had a long history of bilateral relations, which have evolved over time. Here is an overview of the financial aspects of their relationship:

Historical Context

The historical context of Austrian-Russian relations dates back to the 16th century when the lands that are now part of Austria were fiefs of the House of Habsburg. The Holy Roman Emperor, who was also the head of the Habsburgs, had contacts with the Tsardom of Russia, including the well-known embassy conducted by Sigismund von Herberstein. As the Habsburgs expanded their domain, relations with Russia became increasingly important for European security.

Alliance Against the Ottomans and France:

Russia and Austria formed a recurring alliance, often directed against their common enemies, the Ottoman Empire and France. They fought together during the War of the Polish Succession (1733-1738), the War of the Austrian Succession (1740-1748), and the Seven Years' War (1756-1763). From 1787 to 1791, both monarchies waged separate wars against the Ottomans. This shared interest in combating the Ottoman Empire and maintaining the status quo in Europe was a significant factor in their alliance.

The Crimean War and its Aftermath:

During the Crimean War, Austria maintained a hostile neutrality towards Russia, supporting the Anglo-French coalition. This stance angered Tsar Nicholas I and strained Russo-Austrian relations. Although Russia was punished by the Treaty of Paris, Austria ultimately lost the most from the war despite its limited involvement. The war marked a turning point, as Austria abandoned its alliance with Russia and found itself diplomatically isolated. Russia's neutrality during the 1866 Austro-Prussian War further contributed to Austria's defeat and loss of influence in German-speaking lands.

The Balkan Question and Competing Interests:

One of the major sources of tension between Austria-Hungary and Russia was the "Eastern Question," which revolved around the weakening Ottoman Empire and its rebellious Christian subjects. While both empires had interests in the Balkans, their relations deteriorated due to competing goals. In 1903, the pro-Austrian King Alexander I of Serbia was assassinated, and his successor, King Peter I, favored Russia. This shift in Serbian allegiance, along with Austria-Hungary's annexation of the Bosnia Vilayet in 1908, dismayed Russia and led to permanent damage in their relations.

World War I and the Bolshevik Revolution:

The assassination of Archduke Franz Ferdinand of Austria by Serb nationalists in 1914 sparked a series of events that led to World War I, in which Russia and Austria-Hungary fought against each other on the bloody Eastern Front. Following the Bolshevik Revolution in November 1917, the new Russian government sought to end the war with the Central Powers, leading to the Treaty of Brest-Litovsk in 1918.

Cold War and Neutrality:

After World War II, Austria was occupied by the Allied armies and divided into four zones, including a Soviet zone. In 1955, Austria regained its independence and pledged total neutrality in the Cold War confrontation between the Soviet Union and the U.S.-led West. This neutrality has been a defining feature of Austrian foreign policy ever since.

Contemporary Economic Relations:

Despite diplomatic tensions, Austria and Russia have maintained economic ties. In 1968, Austria became the first Western European country to import natural gas from the Soviet Union, and it continues to be a significant importer of Russian gas. Additionally, two-thirds of Austrian companies operating in Russia, such as Raiffeisenbank (Russia) and Red Bull, plan to stay in the country despite the Ukraine crisis. In 2021, Russia exported $631 million worth of goods to Austria, with crude oil being the main item. However, Austria has also supported EU sanctions against Russia following the 2022 Russian invasion of Ukraine.

Austrian-Russian intelligence relations

Austria and Russia have had a long history of bilateral relations, which have been influenced by their predecessor states. The two countries have had both warm and strained relations over the years, with Austria's role in espionage, particularly as a base for Russian intelligence operations, being a notable aspect of their relationship.

Historical Context

The lands now part of Austria were once fiefs of the House of Habsburg, whose head also held the title of Holy Roman Emperor from the 15th century onwards. Russia, on the other hand, was largely uninterested in European affairs before the reign of Peter I in the late 17th and early 18th centuries. However, as the Habsburgs expanded their domain, relations between the two monarchies became increasingly important for European security.

Alliances and Conflicts

Russia and Austria found themselves on the same side during several conflicts, including the War of the Polish Succession (1733-1738), the War of the Austrian Succession (1740-1748), and the Seven Years' War (1756-1763). They also fought together against the Ottomans and participated in the partitions of Poland. The French Revolution created ideological solidarity between the absolutist monarchies of Russia and Austria, and they fought against France during the French Revolutionary Wars and the Napoleonic Wars.

Crimean War and Its Aftermath

During the Crimean War, Austria maintained a hostile neutrality towards Russia, supporting the Anglo-French coalition. This stance angered Tsar Nicholas I and strained Russo-Austrian relations. Although Russia was punished by the Treaty of Paris, Austria ultimately lost the most from the war, finding itself diplomatically isolated. Russia stood aside as Austria was evicted from the Italian and German states, and its neutrality towards its former ally contributed to Austria's defeat in the 1866 Austro-Prussian War and the loss of influence in German-speaking lands.

World War I and Its Prelude

The assassination of Archduke Franz Ferdinand of Austria by Serb nationalists in 1914 sparked a series of events that led to World War I. Austria-Hungary declared war on Serbia, and soon after, on Russia, who had entered the war on the side of Serbia. The two empires fought on the bloody Eastern Front until the war's end, which brought about the overthrow of monarchy and the dissolution of their empires.

Post-World War I and Cold War Era

After World War I, Austria was occupied by the Allied armies and separated from Germany. During the Cold War, Austria was a neutral state near the Iron Curtain, making it an attractive location for intelligence activities. It became a hub for Russian intelligence operations, with Vienna being described as "a haunt for spies" and "the spying capital of the world."

Contemporary Relations

Austria has maintained its neutrality and sought to balance its relations with Russia and the West. However, its close ties with Russia, especially in the energy sector, have drawn scrutiny and strained its relations with Western countries. After the Russian invasion of Ukraine in 2022, Austria faced pressure to align with EU sanctions against Russia, and it eventually supported them despite its neutrality.

Austrian-Russian political relations

Austria and Russia have historically had a complex relationship, with periods of alliance and conflict. Here is an overview of the political relations between the two countries:

Historical Context

During the late 19th and early 20th centuries, Austria-Hungary and Russia had a rivalry in the Balkan region, with both empires seeking influence and territorial gains. This rivalry led to the formation of competing alliances, including the Dual Alliance between Austria-Hungary and the German Empire, and the Three Emperors' League between Russia, Germany, and Austria-Hungary. Despite these alliances, tensions remained high in the region, and Austria-Hungary's annexation of Bosnia and Herzegovina in 1908 caused a major crisis that almost led to war with Russia.

World War II and its Aftermath

During World War II, Austria was annexed by Nazi Germany and became a part of the Axis powers. After the war, Austria was occupied by the Allies, including the Soviet Union, and was divided into four occupation zones. This occupation lasted until 1955 when the Austrian State Treaty came into force, granting Austria full independence and neutrality. The country's neutrality was modelled on Switzerland's and was seen as a way to prevent future conflicts between the Eastern and Western blocs.

Cold War and Post-Cold War Era

During the Cold War, Austria maintained its neutrality and sought to balance its relations with both the Western powers and the Soviet Union. This policy of neutrality continued after the Cold War, with Austria not joining NATO or other military alliances. However, Austria has cooperated with NATO and participated in peacekeeping operations under UN mandates.

Contemporary Relations

In recent years, Austria has been seen as a ""compromised state"" in its relations with Russia. This is due to its economic dependence on Russian energy, with Austria importing 80% of its gas from Russia. Additionally, Austria has been a hub for Russian businesses and investments, including in its banking and energy sectors. Vienna, in particular, has been a centre for Russian intelligence activities and has attracted Russian oligarchs.

Russia-Ukraine Conflict

Following Russia's invasion of Ukraine in 2022, Austria has provided financial and humanitarian aid to Ukraine and supported EU sanctions against Russia. However, Austria initially opposed excluding Russia from the Swift international financial transaction system and has continued to oppose an EU embargo on Russian gas.

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