12 May 2022 13:07

Gazprom subsidiaries in Germany stopped receiving gas from Russia - German minister

BERLIN. May 12 (Interfax) - Gazprom's German subsidiaries stopped receiving gas from Russia yesterday, but the market is able to compensate for the absence of these deliveries, German Minister for Economic Affairs and Climate Action Robert Habeck said.

"Last night, at around 10:30 p.m., [Russian President] Vladimir Putin published a decree imposing sanctions on European enterprises. Gazprom Germania and its subsidiaries are no longer receiving gas from Russia," Habeck said in the German parliament on Thursday.

German gas sector authorities "are monitoring the situation and have prepared for it," the minister said.

"The market can compensate for the absence of gas deliveries from Russia," he added.

According to Habeck, 31 European enterprises had been affected, including Gazprom Germania and some of its subsidiaries. This means trading and storage enterprises are affected, not Gazprom Germania network operators. Supplies from Russia are down by 10 mcm per day, but they can be offset from other sources, and companies are addressing this, he told reporters.

The government has prepared for this with financial and other measures, Habeck said. He said the government had decided not to declare an emergency situation yet.

In his turn, Russian presidential press secretary Dmitry Peskov told reporters in Moscow on Thursday that the sanctions imposed by Russia on Gazprom's subsidiaries in Europe mean that Russia will no longer have any relations with them.

When asked whether the sanctions imposed on Gazprom's former and current subsidiaries in Europe will complicate gas deliveries, Peskov said, "The sanctions against these companies are blocking [...]. Therefore, there will be no relations with these companies. They are simply prohibited."

Upon being asked how it will affect gas deliveries to Europe, Peskov said, "These companies cannot take part in the process any longer. In all likelihood, other companies will participate in this process. But it is better to ask Gazprom for details."

According to the Russian governmental resolution published on the official online database of legal information on May 11, Russia imposed blocking sanctions on the entire Gazprom Germania Group taken under control by the German government. 

As reported earlier, in early April, the German Economy Ministry ordered the transfer of the Gazprom Germania holding under the control of the Federal Network Agency. For the time being, the decision will be valid until September 30 of this year. The right to vote on Gazprom Germania's shares was transferred to BNetzA. The manager has the right to dismiss and reappoint members of the management board, as well as to give instructions to the management board. The authority to dispose of the assets of Gazprom Germania GmbH is limited and is subject to approval by the Federal Network Agency.

There are 31 companies on the list, most of which belong to the Gazprom Germania Group. These are Gazprom Germania GmbH itself and its subsidiaries Gazprom NGV Europe GmbH, Astora GmbH, ZGG - Zarubezhgazneftehim Trading GmbH, Gazprom Schweiz AG, WIEE Hungary Kft., WIEE Bulgaria EOOD, IMUK AG, WIBG GmbH, WIEH GmbH, Wingas GmbH, Wingas UK Ltd, Wingas Sales GmbH, Wingas Holding GmbH, Industriekraftwerk Greifs wald GmbH, Vemex Energo s.r.o., Wingas Benelux s.r.l., Gazprom Marketing & Trading Ltd., Gazprom Global LNG Ltd., Gazprom Marketing & Trading France SAS, Gazprom Marketing & Trading USA Inc., Gazprom Marketing & Trading Switzerland AG, Gazprom Marketing & Trading Singapore PTE. Ltd., Gazprom Marketing & Trading Retail Ltd., Gazprom Mex (UK) 1 Ltd., Gazprom Mex (UK) 2 Ltd., PremiumGas S.p.A., VEMEX s.r.o., VEMEX Energie a.s., and WIEE Romania SRL.

The Russian government also imposed sanctions on the Polish company EuRoPol Gaz S.A., which is the owner of the Polish section of the Yamal-Europe pipeline. As previously reported, in late April, Poland imposed sanctions on Gazprom. The restrictions imply freezing the exercise of rights to shares and other securities and freezing the payment of dividends.

The Wingas/WIEH/WIEE trading group is the owner of a large package of contracts for the supply of Russian gas. Astora is the largest gas storage operator in Europe.

Any transactions are prohibited with regard to these entities, in particular, a separate ban is imposed on calls at Russian ports, payments and securities transactions.

The Russian Finance Ministry is empowered to provide temporary permits for certain transactions with the sanctioned entities.

The list of legal entities was adopted by the Russian government in execution of the Russian presidential decree of May 3, 2022 on application of retaliatory special economic measures due to unfriendly actions of some foreign countries and international organizations.