Germany is considering the idea of nationalizing the German units of the Russian oil and gas giants Rosneft and Gazprom over concerns that companies that are systemically important to the German energy market could run into financial problems, the German business daily Handelsblatt reported. reported this week, citing government sources.
The German Ministry of Economy is now considering these drastic steps in light of the importance of the German subsidiaries of both companies for the German energy market. Chancellor Olaf Scholz is also involved in the talks on the possible nationalization of the German units Rosneft and Gazprom, Handelsblatt reported, citing various government sources. Germany fears a shortage of energy supply if the two companies experience problems or become technically insolvent as banks shy away from funding firms linked to Russia.
Berlin-based Gazprom Germania operates large gas storage facilities, while Rosneft Deutschland is a key player in the German markets for petrol, diesel and kerosene supply and distribution.
Earlier this week, Germany was preparing for a possible disruption of natural gas supply from Russia and activated an emergency plan on Wednesday, ahead of the Thursday deadline ordered by Russian President Vladimir Putin for gas-for-ruble payments. Germany has implemented an emergency plan in case the supply from Russia is interrupted. The plan may include rationing of gas supply. Putin set a deadline of March 31 for the government, Gazprom, and the central bank of Russia to make arrangements for payments in rubles from the so-called “hostile” countries.
German utilities already last week called on the federal government to create an early warning system about a possible decline in gas supply, noting that there are “serious indications that the gas supply situation is about to deteriorate.”
Europe and Germany on Friday continued to receive Russian natural gas via pipelines, even after Putin threatened European countries that Moscow would cut off gas flows unless buyers meet Russia’s gas-for-ruble claim demand by the deadline of Thursday, March 31. .
By Charles Kennedy for Oilprice.com
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