Sanctions against Gazprom Germania set to cost German consumers 5 billion euros: report

The sanction against Gazprom Germania, a former subsidiary of Russian energy giant Gazprom, is expected to cost German gas consumers 5 billion euros, according to the German daily WELT AM SONNTAG reported. According to the report, the company, which is under the external control of Germany’s Federal Network Agency, is now obliged to buy gas on the market under new contracts, which are significantly more expensive than previous ones. . This would eventually lead to higher prices, which would fall on the shoulders of gas consumers.

Notably, Gazprom Germania and all of its assets were terminated by the Gazprom Group on March 31. Later, the company was placed under the supervision of the Federal Network Agency until September 30 by the German Ministry of Economic Affairs and Climate Protection. Earlier on May 11, the former Gazprom subsidiary was confirmed to be on the Russian Federation’s sanctions list. Meanwhile, Kremlin spokesman Dmitry Peskov said companies that fell under Moscow’s retaliatory sanctions will no longer be able to participate in Russia’s gas supply process.

Bulgaria will not negotiate with Russian Gazprom for gas supply

Since the start of the war, several countries and organizations have imposed numerous sanctions on Russia for its unjustified attack on Ukraine. Meanwhile, Bulgarian Deputy Prime Minister Assen Vassilev said the country would “never again” negotiate gas supplies with Russian energy company Gazprom. Speaking in parliament on June 2, he criticized Russia for unilaterally deciding to suspend gas shipments to Bulgaria. The Bulgarian leader’s statement came after Gazprom cut off gas supplies to Bulgaria and Poland after they failed to agree to pay for importing gas from Russia in roubles, Euracriv reported.

Enforcing the gas embargo against Russia would be extremely difficult according to the EU

Earlier on May 30, the European Union (EU) agreed on the sixth round of sanctions which is expected to cut Russia’s oil imports to countries in the bloc by around two-thirds. European Commission President Ursula von der Leyen said the 27-member bloc had agreed to gradually reduce its dependence on Russian oil and coal as soon as possible. Meanwhile, at the Brussels summit, EU leaders claimed that enforcing a gas embargo would be extremely difficult from now on and that it was unlikely to be included in the next round of sanctions against Russia.

Image: AP

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