German subsidiary of Gazprom expropriation of Russian companies as a

German subsidiary of Gazprom: expropriation of Russian companies as a scenario?

Status: 01/04/2022 15:11

According to a media report, the federal government is toying with the idea of ​​expropriating and nationalizing the German subsidiaries of Gazprom and Rosneft if necessary. Meanwhile, the Russian gas company is causing further confusion with a message.

According to a media report, Minister Robert Habeck’s Federal Ministry of Economy is undergoing various internal scenarios in case the German subsidiaries of Russian state-owned companies Gazprom and Rosneft get into trouble. Among other things, it is about nationalization and expropriation, reports “Handelsblatt”, citing government officials.

With the plans, the federal government wants to avoid a major compromise of energy supply, especially in eastern Germany. While energy companies have been freed from Western sanctions, banks and business partners have distanced themselves from companies with Russian owners since the sanctions took effect, the paper writes.

Gazprom Germania operates large gas storage facilities

As a result, both companies got into more and more turmoil, so that their business base could break down. The risk of “technical bankruptcy” cannot be ruled out immediately, said “Handelsblatt”, according to a source. A collapse of the two companies would have a huge impact on energy supplies. Because both companies are of great importance to the German market.

A message from the Gazprom group that it was giving up its German subsidiary Gazprom Germania and its holdings caused confusion in the afternoon. Further details were not initially known. Berlin-based Gazprom Germania so far manages the German business, operates large storage facilities – including in Rehden, Lower Saxony – and resells the gas. It was unclear whether the notification would have consequences for gas deliveries to Germany.

With a share of almost 40%, the world’s largest natural gas production company, Gazprom, plays a key role in Germany’s gas supply. Yesterday it became known that EU Commission investigators had sought out several companies in Germany – including Gazprom Germania – after allegations against the parent company. There are fears that the companies may have abused their dominant position in the market, said the Brussels official responsible for enforcing EU competition law. These are companies that do business with pipelines or with the delivery or storage of natural gas.

Rosneft owns three oil refineries

Meanwhile, Rosneft Germany accounts for 25% of the German refinery business, making it Germany’s third largest oil processing company. The company is also headquartered in Berlin and has three refineries in Schwedt (Brandenburg), Karlsruhe and Neustadt an der Donau (Bavaria).

According to “Handelsblatt”, the Federal Ministry of Economy has been examining for weeks how to ensure the continuity of the operation of the PCK refinery in Schwedt. Partly owned by Rosneft, it supplies the Berlin/Brandenburg area with gasoline, diesel, heating oil and kerosene.

According to the source, the federal government’s entry into the refinery is an option that should be kept open. It is extremely unlikely that other mineral oil companies will be able to intervene in case of doubt.

Gas dispute with Russia – unacceptable blackmail

Kai Küstner, ARD Berlin, 1 April 2022 7:10 am