Germany Announces Nationalization of Russian Gazprom Subsidiary to "Maintain Energy Supply Security"

Gazprom Germania Trust Management Announcement
Gazprom Has Already Relinquished Operating Rights... Russian Government Backlash

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] The German government announced that it will nationalize Gazprom Germania, the German subsidiary of Russia's Gazprom. The German government stated that this measure is an inevitable step to ensure energy supply stability within Germany, but it is expected that Russia will strongly oppose it and retaliatory measures will follow.

According to AFP on the 4th (local time), Robert Habeck, Germany's Vice Chancellor and Minister for Economic Affairs and Climate Action, said in a statement, "We will temporarily place Gazprom Germania, Gazprom's German subsidiary, under trust management," adding, "This company must be managed by the government to ensure energy supply stability in Germany, and such energy infrastructure must not be exposed to arbitrary decisions from the Kremlin."

Following this nationalization measure, the German Federal Network Agency will act as the trustee for Gazprom Germania until September 30, Habeck said. Gazprom Germania is expected to transfer its voting rights to the German Federal Network Agency in accordance with the German government's measures. Klaus M?ller, President of the German Federal Network Agency, emphasized in a statement, "Our goal is to operate Gazprom Germania for the benefit of Germany and Europe."

Gazprom Germania is a major infrastructure company in Germany that supplies and manages gas imported from Russia and operates large-scale gas storage facilities within Germany. Germany is known to import more than 55% of its total natural gas from Russia.

Earlier, on the 31st of last month, local media reported that the German government was considering nationalizing or confiscating voting rights of Gazprom Germania along with the German subsidiary of Russia's state-owned oil company Rosneft, sparking controversy. Following these reports, the Russian government strongly opposed the move. Dmitry Peskov, spokesperson for the Russian Kremlin, criticized the German government, saying, "This violates international law and all relevant laws," and "The very consideration of such issues is unacceptable."

Subsequently, on the 1st, Russia's Gazprom headquarters announced it would suspend its shareholding in Gazprom Germania and its subsidiary Gazprom Marketing & Trading. As a result, the German government's nationalization measures are expected to be fully implemented.

This content was produced with the assistance of AI translation services.