Germany Takes Charge Of Russia's Gazprom

Germany has disclosed on Monday, that it was temporarily taking control of a longtime German subsidiary of Russia’s state-owned energy giant Gazprom.

This is after an opaque move last week by the parent company to cut ties with the unit.

The move is said to be aimed at securing energy supply and critical infrastructure amid growing distrust between the trade partners in the wake of the Ukraine war.

The Economy Minister, Robert Habeck said Germany’s network regulator has been appointed as Gazprom Germania’s trustee until September 30, with the right to dismiss and appoint managers.

He added it is meant as a temporary measure to bring order to the conditions at the company.

Habeck said; “The German government is doing what is necessary to ensure security of supplies in Germany, and that includes not exposing energy infrastructure in Germany to arbitrary decisions by the Kremlin."

The move comes after Gazprom unexpectedly announced last Friday it was withdrawing from Gazprom Germania, without disclosing a new ownership structure, which Habeck said violates German rules on reporting acquisitions.

Under German law, the government has the right to examine transactions involving non-EU firms deemed systemically relevant.

Under the interim arrangement, voting rights in Gazprom Germania will be transferred to the Bundesnetzagentur.