The federal government is preparing billions in loans to bail out a former branch of Gazprom PJSC, which is now under the control of the country’s energy regulator, according to people familiar with the matter.
Those who did not want this said that the rescue of Gazprom Germania GmbH could happen as soon as this week, with the state-owned KfW Group expected to provide a loan of 5-10 billion euros. . You are identified because the information is private. People said talks are still ongoing and plans could change.
The money will help stabilize the company’s finances and ensure security of supply after Russia halted supplies to Gazprom Germany in response to Germany’s takeover of the company and its subsidiaries earlier this year. The move forced the unit – which some customers have already shunned – to buy some of the energy it supplies to its customers on the spot market and pay higher prices.
Germany’s energy regulator, the Bundesnetzagentur, said in a statement it was not commenting on the speculation and that all Gazprom Germania stakeholders were “working extensively to keep the business running”. The Treasury Department did not respond to a request for comment, while a spokeswoman for the Economy Department declined to comment.
Gazprom Germany owns several gas storage facilities in Germany, including the largest in the country. It also owns Wingas GmbH, which supplies large industrial customers in the country. The company has a retail operation that supplied a fifth of commercial gas to the UK in 2020, a trading arm in London and an LNG business, making it central to most of Europe’s energy markets.
Germany is struggling over what to do with subsidiaries of Russian companies in the country, many of which own assets vital to securing supplies and the German economy. The government is considering various options ranging from guardianship – which it chose in the case of Gazprom Germania – to control of energy companies.
In April, the governing coalition introduced a series of measures that would allow Berlin to place energy companies under state control. The leadership of Federal Chancellor Olaf Scholz has also created financing instruments in order to be able to participate in the event of a supply threat by directly injecting capital to save companies and offering KfW loans.
Gazprom Germania’s mandate expires on September 30, and there are still no concrete plans for further development. Gazprom Marketing and Trade, the London trading arm, has already said it does not expect a return to Russian ownership.
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