German government will nationalise Gazprom subsidiary

German government will nationalise Gazprom subsidiary
Photo: Maheshkumar Painam - Unsplash

The German government has announced the nationalisation of the German subsidiary of the Russian giant Gazprom. 

The company was initially taken into the control of the state in the spring but a deterioration in its financial situation has led to a direct takeover. In justifying the decision, the Ministry of the Economy has said that Gazprom Germania is “a key company for the supply of energy in Germany. 

The company is currently the utility supplier for a number of German municipalities and has a 20% market share in the country. Among its assets are also important infrastructure for both the transportation and storage of gas. 

French broadcaster RFI have reported that as part of the takeover, the state will inject 225 million euros of fresh money into the company, which will now be renamed SEFE. 

This is the second nationalisation in the German energy sector in a matter of weeks after that of the German gas supplier Uniper, which had suffered financial issues due to Russian gas cuts.

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