Germany nationalizes ex-subsidiary of Gazprom

MOSCOW. Nov 14 (Interfax) - The German authorities have decided to nationalize SEFE Securing Energy for Europe GmbH, a former subsidiary of Gazprom formerly known as Gazprom Germania.

The government will acquire 100% of SEFE's shares and increase loans to the company from Germany's KfW Development Bank from 11.8 billion euros to 13.8 billion euros, the German Federal Ministry for Economic Affairs and Climate Action said. A substantial portion of the loans should later be converted into share capital.

State-owned company Securing Energy for Europe Holding GmbH will be used for the nationalization, as it will buy out the shares of SEFE Securing Energy for Europe GmbH for 225.595 million euros.

The Federal Ministry for Economic Affairs and Climate Action gave instructions for Gazprom Germania to be transferred to the management of the Federal Network Agency in April 2022. The Russian Federation introduced retaliatory sanctions in May, banning any transactions with all companies of Gazprom Germania Group.