German Govt Backs Gazprom Germania with €10 Billion Loan

Germany will back Gazprom Germania (the energy business abandoned by Russia’s Gazprom in April) with a loan of close to €10 billion to help bolster the security of Europe’s energy supplies.

Germany will back Gazprom Germania (the energy business abandoned by Russia’s Gazprom in April) with a loan of close to €10 billion to help bolster the security of Europe’s energy supplies.

The energy trading, storage and transmission business, which Gazprom ditched following Russia’s invasion of Ukraine in February, will be renamed Securing Energy for Europe GmbH, the German government said in a statement.

A government source said state investment bank KfW would support the company with a loan of between €9-10 billion designed to ensure the continuity of a business that is important for Europe’s energy supplies.

The new long-term arrangement will allow administrators to focus on securing energy supplies. Under the previous short-term agreement, administrators’ primary duty would have been to preserve the company’s capital for its original owner, the Russian state.

German Finance Minister Christian Lindner said the state-guaranteed loans would have no implications for the federal budget. “They are just guarantees,” he said.

Gazprom Germania’s intertwined network of units includes trader Wingas and storage firm Astora, which operates six billion cubic meters of underground gas caverns in Germany and Austria.

UK arm Gazprom Marketing & Trading provides fuel to consumers including factories, restaurants and the National Health Service, which has caused concerns in Britain that could be alleviated by the German move.

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