Reside information updates: German authorities nationalises Gazprom subsidiary

The German authorities has nationalised Gazprom’s German subsidiary, in a transfer it mentioned was designed to safeguard the nation’s gasoline provide.

A press release from the economic system ministry mentioned Gazprom Germania, which has been renamed Securing Vitality for Europe (Sefe), has been “transferred into federal possession”. It mentioned the explanation for the transfer was the corporate’s “over-indebtedness”, which had left it at risk of insolvency. That, in flip, would “endanger Germany’s safety of provide”.

Gazprom Germania was positioned below the trusteeship of the German state in April, a number of weeks after Russia invaded Ukraine. The set off was a transfer by Gazprom to alter its possession construction in ways in which violated Germany’s strict legal guidelines on overseas funding.

Sefe started to come across monetary issues after Russia imposed sanctions in opposition to the corporate and all its subsidiaries earlier within the yr.

Banks and different enterprise companions additionally severed their ties with the corporate due to the “unclear possession construction”, the economic system ministry mentioned. “That endangers the continuation of Sefe’s enterprise operations and by extension Germany’s gasoline provide,” it mentioned.

The transfer on Sefe comes two months after the German authorities took management of three refineries owned by Russian oil firm Rosneft, saying Russia was “not a dependable power associate”.

Sefe’s property embody Germany’s largest gasoline storage facility, Rehden, in addition to the Wingas distribution firm that provides large industrial shoppers with gasoline. It additionally comprises Gazprom Advertising and marketing & Buying and selling, a giant dealer of gasoline, liquefied pure gasoline and energy.