The European Commission has approved the nationalization of Gazprom Germania, the German subsidiary of Russian Gazprom. The Brussels regulator approved a grant of 225.6 million euros on Saturday. This will allow the German government to take full control of the company, which is now called Security Energy for Europe (Sefe) and is held in trust by the Federal Network Agency, DW reported.
The European Commission said the money was allocated under the crisis mechanism which allows companies suffering the consequences of the energy crisis to receive subsidies in the event of a lack of private capital. Sefe – formerly Gazprom Germania – suffered major losses after the war in Ukraine This company, which accounts for 14% of the German gas supply market and 28% of gas storage facilities in Germany, is systemically important.
Russian state monopoly Gazprom has announced that it no longer owns Gazprom Germania. He gave the asset to a little-known company to get it out of sanctions. In early April, the German authorities in turn appointed the Federal Network Agency (BNetzA) as trustee of the company to secure the country’s gas supply. In response, the Kremlin imposed sanctions on the former Gazprom subsidiary prohibiting it from doing business with it. In mid-July, the federal government granted Sefe a multi-billion dollar bailout to prevent it from going bankrupt.