Daily Management Review

EC to allocate Germany €225.6 million to take over Russian Gazprom's subsidiary


The European Commission (EC) has authorized Germany to receive financial assistance of €225.6 million to support Russian Gazprom's former German subsidiary SEFE GmbH. According to the EC, this sum will enable the German government to fully nationalize SEFE by purchasing all of its shares.

The EC stated in a press statement on its website that "this action will enable the German state to replace Gazprom, the Russian state-owned corporation with a controlling shareholding, and become a 100% owner of SEFE GmbH."

According to the document, the financial aid distribution complies with the terms of the Treaty on the Functioning of the European Union and is an urgent action given the EU's current economic crisis.

The managing director of the subsuduary stated that the company need €5 billion to replace Russian gas that had not been delivered in August. Due to Gazprom's loss of control over the German infrastructure as of April 1, SEFE now has external management, which was instituted by the German government.

source: dw.de