Germany nationalizes Gazprom subsidiary: Economy Ministry

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Germany announced on Monday that it was nationalizing a former subsidiary of the Russian energy giant Gazprom, saying the step was necessary due to the systemic importance of the company for power supplies in the country.

The company Securing Energy for Europe GmbH (SEFE) was previously known as Gazprom Germania. It is a network operator and indirectly controls Germany's largest gas storage facility in the northwestern town of Rehden.

In the wake of the Ukraine war and Russia's decision to reduce energy supplies to Europe, Germany placed the company under its effective control in April.

According to the German Economy Ministry, business partners and banks have suspended business relations with the company or are reluctant to enter into new ones.

"This jeopardizes the continuation of SEFE's business operations and thus the gas supply," the Economy Ministry added.

Germany was therefore formerly nationalizing the company and turning it into a state asset.

Under complex accounting maneuverings, the company's losses are offset against its capital reserves.

In a similar case, Germany confirmed in late September the nationalization of struggling gas importer Uniper, adding another $7.9 billion to its rescue as Berlin struggles to secure power for Europe's largest economy in the aftermath of the West’s sanctions against Russia.

Warsaw seizes Gazprom share in Polish section of Yamal gas pipeline

In the same context, the Polish government said on Monday that it was seizing Gazprom's share in EuRoPol Gaz, the company managing the Polish section of the Yamal-Europe gas pipeline.

According to Poland's Development Ministry, the move was designed to "ensure the security of (Poland's) critical infrastructure."

It is noteworthy that the Russian gas giant has a 48% stake in the company and the Polish state the remaining 52%.

Read more: Gazprom supplies 42.2 mln m3 gas for Europe through Ukraine via Sudzha