Breakingviews - Gazprom sale fumble triggers canny German pounce

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A Russian blunder is helping Germany address its energy security headache. The government of Olaf Scholz on Monday took control of Gazprom’s European business after the $73 billion gas major tried to sell it without seeking prior approval from Berlin. The move secures critical assets like gas storage facilities, without the upfront costs of a messy nationalisation.

The logo of Gazprom Germania is pictured at their headquarters, in Berlin, Germany, April 1, 2022. REUTERS/Fabrizio BenschMILAN, April 5 - A Russian blunder is helping Germany address its energy security headache. The government of Olaf Scholz on Monday took control of Gazprom’s

European business after the $73 billion gas major tried to sell it without seeking prior approval from Berlin. The move secures critical assets like gas storage facilities, without the upfront costs of a messy nationalisation. Through its Gazprom Germania unit, the Russian energy giant has for years owned some large gas storage facilities, crucial to ensure sufficient hydrocarbon reserves, in Germany and beyond. This looked eminently impractical once Moscow invaded Ukraine in February. The European Commission is looking to

that will require European Union member states to certify that non-EU ownership of critical gas infrastructure does not threaten the security of gas supply. Yet nationalising the assets could be costly and open the door to litigation.to two little-known Russian-controlled entities has offered Berlin a way out.

But the move does not ultimately address the question of ownership. Berlin has been looking at nationalising the Germany-based assets of Gazprom and Rosneft

 

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