Page 11 - FSUOGM Week 45 2022

FSUOGM POLICY FSUOGM

EU clears German move to take

control of Gazprom unit

GERMANY THE European Commission has cleared Germa- to energy companies to cover the cost of their
ny’s plan to nationalise the former local arm of trading activities, amid high and volatile prices
The EC has cleared Russia’s Gazprom. during the current crisis.
Berlin to take a 100% The EC has cleared Berlin to take 100% own- German authorities seized control of Gaz-
stake in the former ership of energy group SEFE (Securing Energy prom Germania in April in order to safeguard
Gazprom unit. for Europe), which was formerly known as its energy security amid the risk of cuts in Rus-
Gazprom Germania. Brussels also approved a sian gas supply to the country. The Kremlin
€225.6mn ($234mn) aid measure by Germany to subsequently hit back by imposing sanctions on
support the company, which is currently under the company and Gazprom’s other former units
Berlin’s trusteeship. in Europe, amid concerns that they would be
“We welcome the change of ownership of nationalised.
SEFE, which will enable Germany to search for Moscow could respond to the nationalisation
new gas suppliers while ensuring security of gas by seizing any remaining German assets in Rus-
supply,” Commission Executive Vice President sia, including the properties of Wintershall Dea,
Margrethe Vestager said in a statement. a German gas producer.
Energy companies in Germany have been Germany’s government also placed Rosneft’s
struggling with liquidity crunches and finan- refining interests in the country under state
cial losses since Russia reduced gas supply over trusteeship in late August. Rosneft is the major-
the summer against the backdrop of the war in ity owner of the 230,000 barrel per day (bpd)
Ukraine. Its government said it was looking to Schwedt oil refinery, with a 55% stake. It is only
bail out SEFE in September. It has already bailed the fourth-largest refinery in Germany, but it is
out Uniper and the local unit of Russia’s Rosneft, seen as strategically valuable, as it covers around
and is reportedly discussing such a move with 90% of the fuel needs of Germany’s capital, Ber-
VNG as well. lin. The plant draws its crude from the Sovi-
“The Commission found that the German et-era Druzhba pipeline. Rosneft made a bid to
measure is necessary, appropriate and propor- expand its share to 92% last year by exercising its
tionate to remedy a serious disturbance in the pre-emptive right to Shell’s interest, but that deal
economy of a member state,” it said in a state- was scuppered after Moscow invaded Ukraine.
ment concerning SEFE. Brussels adjusted its The Russian company also has stakes in refin-
state aid rules once more in late October, to eries in Karlsruhe and Vohburg, accounting for
allow governments to provide state guarantees 12% of Germany’s overall refining capacity. ™

Week 45 14•November•2022 www. NEWSBASE .com P11