Germany has to give Gazprom Germany 10 billion to fill gas deposits
Germany could lend up to € 10 billion to bail out a former unit of Russia's Gazprom, which the German government expropriated earlier this year, government sources told Bloomberg on Monday.
Gazprom Germany GmbH was the German unit of Gazprom until a few months ago, before the German government placed Gazprom Germany under the trusteeship of the German energy regulator to ensure security of supplies after the invasion of Germany. Ukraine by Russia.
Last month, Gazprom cut off gas supply to Gazprom Germany in retaliation for Western sanctions, while Russia imposed sanctions on Gazprom branches in Europe, banning them from supplying Russian gas. The funny thing is that, in theory, Gazprom Germany is still owned by Gazprom.
Without Russian gas, Gazprom Germany had to buy gas at higher prices on the spot market, financially devastating and nearing bankruptcy. However, Gazprom Germany has several storage sites in Germany, including the largest in the country. Without financial support, the company may not be able to fill its gas storage to the levels required by Germany and the EU before next winter to avoid gas shortages. So Germany finances a company that, formally, is still Russian.
Now, according to Bloomberg sources, the German government, through the state-owned bank KfW Group, could approve a loan of between $ 5.2 and $ 10.4 billion ($ 10 billion) to Gazprom Germany. Sources told Bloomberg that the loan could come as early as this week, adding that the plans aren't final and may still change.
The Federal Networks Agency of Germany, Bundesnetzagentur, told Bloomberg it did not want to comment on the speculation, noting that all parties involved with Gazprom Germany are "working hard to maintain commercial operations."
Germany, Europe's largest economy, is a major buyer of Russian natural gas and has been preparing for the possibility that fossil fuel supplies from Russia may be cut off due to sanctions or retaliation by Moscow for nearly three months. to cut or interrupt the supply of natural gas. The question that arises, however, is: could the German government not leave the management of Gazprom Germany to the Russians, while preventing them from exporting profits? Maybe he avoided having to put 10 billion euros into it….
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The article Germany must give 10 billion to Gazprom Germany to fill gas deposits comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-germania-deve-dare-10-miliardi-a-gazprom-germania-per-riempire-i-depositi-di-gas/ on Tue, 14 Jun 2022 06:00:25 +0000.