war against Ukraine
Bundesnetzagentur takes charge of Gazprom subsidiary
The headquarters of Gazprom Germania in Berlin. Photo: Paul Zinken/dpa
© dpa-infocom GmbH
In a so far unique legal act, the German state has taken control of a large company. The Federal Network Agency is now temporarily in charge of Gazprom Germania.
By order, the federal government has taken over the supervision of parts of the German gas supply previously managed by Russia. Federal Economics Minister Robert Habeck (Greens) temporarily appointed the Federal Network Agency as a trustee for the German subsidiary of the Russian state-owned company Gazprom.
Habeck justified this with unclear legal relationships and a violation of reporting regulations. The aim is to ensure security of supply. Gazprom is still Germany’s largest gas supplier.
Habeck said that Gazprom Germania GmbH operates critical infrastructure in Germany itself and through its subsidiaries. “It is active in gas trading, gas transport and storage and is of paramount importance for the gas supply in Germany.” Among other things, Gazprom operates the largest gas storage facility in Germany, which accounts for a fifth of Germany’s storage capacity.
According to Habeck, the parent company surprisingly announced a few days ago that it was withdrawing from Gazprom Germania and its holdings. “It was not communicated who the new economic and legal owner of this holding should be,” said Habeck. This is in itself a violation of the obligation to report under the Foreign Trade and Payments Ordinance.
«Indirect acquisition» of Gazprom Germania
However, the ministry had “obtained knowledge” of an “indirect acquisition” of Gazprom Germania by “JSC Palmary and Gazprom Business Export Services LLC”. When operating critical infrastructure, every acquisition by a non-EU investor must be approved by the Ministry of Economic Affairs. However, it is unclear “who is behind the two companies economically and legally”.
In addition, the acquirer ordered the liquidation of Gazprom Germania, which is illegal as long as the acquisition is not approved. “A liquidation would result in the end of the legal existence of Gazprom Germania.”
The Ministry of Economic Affairs then issued the order. The basis is the Foreign Trade Act. The Federal Network Agency is temporarily a trustee until the end of September. This serves to protect public safety and order and to maintain security of supply. “The step is absolutely necessary,” said Habeck. The security of supply is currently guaranteed, he emphasized.
“The Federal Network Agency will use the time to bring order to the situation.” According to Habeck, the authority is entitled, among other things, to dismiss and reappoint members of the management board and to issue instructions to the management board. “The exercise of the voting rights of the shareholders is excluded.”
One would not expose energy infrastructures in Germany to arbitrary decisions by the Kremlin, Habeck said. “The proper conduct of business in Germany must be guaranteed, we have to take care of that.”
Federal Network Agency as trustee
The Federal Network Agency explained that for a transitional period it would assume the function of a shareholder in trust and could thus ensure proper management. “We are aware of the responsibility for the secure gas supply that this task entails,” said President Klaus Müller. “Our aim will be for Gazprom Germania to be managed in the interests of Germany and Europe. We want to take all the necessary steps to continue to ensure security of supply. The business of Gazprom Germania and its subsidiaries should continue to be controlled in this sense. »
The Russian energy giant Gazprom announced on April 1 that it had given up its German subsidiary Gazprom Germania. At the end of March, the Gazprom Group ended its stake in the German company Gazprom Germania GmbH and all of its assets, the Russian group announced on its Telegram channel.
Gazprom Germania owns other important companies in the German gas industry. These include the gas trader Wingas, which supplies public utilities, among other things, the gas storage operator Astora and a minority stake in the gas transport company Gascade.