Plans to nationalize the company had previously been rejected by the government of the country.
According to Sunday's edition of Welt am Sonntag, the federal government in Berlin has covertly established a holding company to soon take over the former German subsidiary of Gazprom.
Previously known as Securing Energy for Europe (SAFE), the Federal Grid Agency has been in charge of running Gazprom Germania. Securing Energy for Europe Holding GmbH, a name that sounds similar to SAFE has been given to the new holding firm in the interim (SEEHG).
The new holding company's controlling directors have been selected as two attorneys from CMS Hasche Sigle.
Some of the biggest natural gas storage facilities in the nation were once run by Gazprom Germania, a subsidiary of Russian gas giant Gazprom. As part of the sanctions on Russia relating to Ukraine, the company was seized.
According to a June report by Bloomberg, the German government intended to set aside up to €10 billion ($10.4 billion) to save Gazprom Germania, which had been taken over by the nation's energy regulator in April. At the time, the regulator declared that it would run the business with Germany and Europe in mind.
Following the seizure, Gazprom ceased supplying the company with its approximately 10 billion cubic meters of gas per day worth of gas, and on May 11, Russia imposed sanctions on Gazprom Germania. Due to the company's subsequent isolation from trading partners and cash flow issues, important gas merchants in Germany and the UK were at risk of going out of business.
The holding company was established as a preventative measure for any restructuring initiatives, according to the German Economy Ministry.
Currently just existing as a corporate law shell, it is a strictly preventative entity, a ministry spokeswoman told Welt am Sonntag.
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