Germany takes temporary control of Gazprom subsidiary

BERLIN — Germany said on Monday it was temporarily taking control of Russian gas giant Gazprom's German subsidiary to secure energy supply and critical infrastructure amid growing distrust between the trade partners in the wake of the Ukraine war.

Energy Minister Robert Habeck said the Bundesnetzagentur energy regulator would become the trustee of Gazprom Germania until September 30.

"The government is doing what is necessary to ensure security of supplies in Germany, and that includes not exposing energy infrastructures in Germany to arbitrary decisions by the Kremlin," Habeck said.

The move comes after state-owned Gazprom unexpectedly said it was withdrawing from Gazprom Germania last Friday, without disclosing a new ownership structure.

The German unit holds several key energy assets, including natural gas supplier Wingas, which has a market share of around 20 per cent in Germany, gas storage firm Astora, a London-based trading arm and other foreign subsidiaries.

The German government made the decision to step in because of the current "unclear" legal structure behind Gazprom Germania and the mother firm's failure to comply with the obligation to inform German authorities of ownership changes, the minister said.

Under the German law, the government has the right to examine transactions involving non-EU firms deemed systemically relevant.

Habeck said Gazprom Germania operates "critical infrastructure" in Europe's biggest economy.

Under the interim arrangement, voting rights in Gazprom Germania will be transferred to the Bundesnetzagentur. 

The energy regulator will also be allowed to dismiss management members and appoint new ones, as well as "take all necessary measures to guarantee supplies", Habeck said.