Germany and Poland nationalize subsidiaries of Russian Gazprom

Author:
Kostia Andreikovets
Date:

The German government is buying 100% of gas importer Securing Energy for Europe (SEFE), formerly known as Gazprom Germania.

Referring to the statement of the Ministry of Energy of Germany, Bloomberg writes that the German government has decided to nationalize the former subsidiary of the Russian Gazprom due to large debts and the imminent bankruptcy of the company.

"Europeʼs largest economy is facing the potential collapse of its energy sector after Russian President Vladimir Putin began restricting gas flows following the invasion of Ukraine," writes Bloomberg.

According to the report, SEFEʼs equity as of October was €1.03 billion, and net losses were €2.07 billion. The Government of the Federal Republic of Germany will contribute €7.7 billion to SEFEʼs share capital and increase the companyʼs credit to €13.8 billion. This is the second time the government has bailed out an energy company. In September, Uniper SE, the countryʼs largest gas importer, was nationalized.

Meanwhile, the Polish authorities have withdrawn Gazpromʼs share in the equity capital of EuRoPol Gaz, which owns the Polish section of the Yamal-Europe gas pipeline, writes Rzeczpospolita. Authorities seized a 48% stake after Poland imposed interim management on Novatek Green Energy, a "subsidiary" of Russian liquefied gas supplier Novatek Group.

  • Earlier, Poland announced a complete rejection of Russian gas by the end of 2022. In September of this year, the Baltic gas pipeline was opened in Poland, which will supply the country with gas from the Norwegian shelf through the territory of Denmark. The Polish president said that his country has become completely independent of Russian gas.