Germany is considering nationalizing the German units of Russian oil and gas giants Rosneft and Gazprom amid concerns that the companies vital to Germany’s energy market could face financial difficulties, Handelsblatt reported this week, citing government sources.
In view of the importance of the German subsidiaries of both companies for the German energy market, the Federal Ministry of Economics is now considering these drastic steps. Chancellor Olaf Scholz is also involved in the talks about a possible nationalization of the German units of Rosneft and Gazprom, Handelsblatt reported, citing several government sources. Germany fears an energy shortage if these two companies run into trouble or become technically insolvent, as banks are reluctant to finance companies with links to Russia.
Berlin-based Gazprom Germania operates large gas storage facilities, while Rosneft Germany is a major player in the German markets for the supply and distribution of gasoline, diesel and kerosene.
Earlier this week, Germany prepared for a possible disruption in natural gas supplies from Russia, activating a contingency plan on Wednesday, ahead of Thursday’s deadline ordered by Russian President Vladimir Putin for gas-for-ruble payments. Germany has triggered a contingency plan in case supplies from Russia are disrupted. The plan could involve rationing the gas supply. Putin has given the government, Gazprom and the central bank of Russia until March 31 to arrange for payments in rubles from the so-called “enemy” countries.
Last week, German energy suppliers called on the federal government to create an early warning system for a possible decline in gas supply, as there were “serious indications of an imminent deterioration in the gas supply situation”.
Europe and Germany continued to receive Russian natural gas through pipelines on Friday, even after Putin threatened European countries that Moscow would shut off gas supplies if buyers paid Russia’s demand for gas for rubles only by the Thursday, March 31 deadline. March, would come.
By Charles Kennedy for Oilprice.com
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