German agency takes charge of subsidiary of Russia's Gazprom

Germany has put a government agency in charge of a longtime German subsidiary of Russia’s state-owned energy giant Gazprom after an opaque move last week by the parent company to cut ties with the unit

Germany Russia Ukraine War
Germany Russia Ukraine War

Germany on Monday put a government agency in charge of a longtime German subsidiary of Russia's state-owned energy giant Gazprom after an opaque move last week by the parent company to cut ties with the unit.

Economy Minister Robert Habeck said Germany’s network regulator has been appointed as Gazprom Germania’s trustee until Sept. 30, with the right to dismiss and appoint managers. He said it is meant as a temporary measure to bring “order to the conditions” at the company.

“The German government is doing what is necessary to ensure security of supplies in Germany, and that includes not exposing energy infrastructure in Germany to arbitrary decisions by the Kremlin,” Habeck said.

He said Gazprom announced it was withdrawing from Gazprom Germania but didn’t give details on the new owners, which violates German rules on reporting acquisitions.

He said the unit is “of paramount significance” to natural gas trade, transport and storage in Germany and also is active in Switzerland and the Czech Republic.

The minister said officials have found out about an “indirect acquisition” of Gazprom Germania by entities called GSC Primary and Gazprom Export Business Services LLC.

He said German law calls for his ministry to give permission for acquisitions of critical infrastructure by any non-European Union investor, but it’s unclear who is behind those companies. He also said the buyer ordered Gazprom Germania’s liquidation, which isn’t allowed before a purchase has been approved.

It wasn't immediately clear what was behind Gazprom's move, which came amid tensions between Russia and Europe over natural gas deliveries.

Germany, which gets about 40% of its gas from Russia, is moving to reduce its dependence on Russian gas but has resisted calls for an immediate embargo on Russian energy imports.

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