The CSSF imposes a fine on the Luxembourg financing vehicle of Gazprom

The logo of the Russian energy group Gazprom presented in Saint Petersburg

Photo credit: Stringer/dpa

Luxembourg’s finance authority has fined Russian energy giant Gazprom’s finance company €10,000, which has separately warned it could face bankruptcy due to Western sanctions. imposed on Russia.

“The administrative fine amounts to €10,000,” the CSSF regulator said in a statement this week, as Luxembourg-based Gaz Capital SA missed a deadline to file its annual accounts for 2021.

The unit published its annual accounts on July 27, according to commercial register filings, more than three months after the end-March deadline.

“The company primarily engages in the issuance of loan participation notes for the purpose of funding loans to the public joint-stock company Gazprom,” the filings say. The company posted neither profits nor losses in 2021 and 2020.

In its annual accounts, Gaz Capital calls Russia’s war with Ukraine a “conflict” and refers to the country as “Ukraine,” a description that Ukrainians say reduces the sovereign nation to a province of Russia.

“The directors believe that the ongoing conflict in Ukraine creates significant uncertainty about the company’s ability to continue operations over the next 12 months,” the accounts state. In accounting, a business being a “going concern” means it can stay afloat and avoid bankruptcy.

PwC’s auditors, who approved the accounts, agreed that there was significant uncertainty as to whether Gaz Capital could continue to exist.

The United States sanctioned Gazprom immediately after Russia invaded Ukraine in February, including the Luxembourg subsidiary Gazprombank. So far, the EU has refrained from sanctioning Gazprom, although some EU countries argue it should be included in the next round of sanctions.

The Luxembourg Stock Exchange has suspended trading in some of Gaz Capital’s loan participation bonds due to sanctions. The Euronext stock exchange also suspended the securities from June this year, according to Gaz Capital’s annual accounts.

Gaz Capital has been gradually replacing Eurobonds with Russian bonds, according to a report by Russian news agency Interfax.

Gazprombank, also supervised by the CSSF, has not published its annual accounts on time for several years, which shows the ineffectiveness of Luxembourg’s laws on corporate transparency, a senior government minister acknowledged in May.


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About Leni Loberns

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