Russia halts gas supply via Gazprom's Germany branch... Pressure through resource weaponization

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] Russia has halted gas supplies through the German branch and subsidiaries of the state-owned gas company Gazprom as a retaliatory measure against Western sanctions on Russia. This is interpreted as a strategy to weaken the European Union's (EU) cohesion through resource weaponization, amid expectations of the announcement of the EU's 6th round of sanctions against Russia.

According to Deutsche Welle (DW) on the 12th (local time), Robert Habeck, Germany's Vice Chancellor and Minister for Economic Affairs and Climate Action, stated in a speech to the Bundestag that "some subsidiaries of Gazprom Germania are not receiving gas due to Russian sanctions." Since the Russian headquarters abruptly relinquished ownership of the corporation last month, the German federal agency, the Federal Network Agency, has been managing it.

Germany is the largest gas consumer in Europe, with Russian gas accounting for 55% before the Ukraine war, but recently reduced to 30%. The exact share of Gazprom Germania in Germany's gas supply network is not clearly known. Vice Chancellor Habeck emphasized, "We have found alternative gas suppliers" and "Information about these suppliers will be disclosed later."

Before halting gas supplies to Gazprom Germania, Russia announced sanctions against some Western companies including it. On the same day, through a legal information disclosure site, Russia announced sanctions against Europol Gaz, the operator of the Yamal-Europe gas pipeline in Poland that supplies Russian natural gas to Europe, as well as Gazprom Germania and its 29 subsidiaries.

These subsidiaries are located in Switzerland, Hungary, the United Kingdom, France, Bulgaria, Benelux (Belgium, Netherlands, Luxembourg), the United States, Singapore, and other places.

Most of the targeted energy companies belong to EU member states that imposed sanctions on Russia following the invasion of Ukraine.

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