Germany has announced the nationalization of a former subsidiary of Russia's energy giant Gazprom, as the country takes measures to secure its energy needs as it breaks away from Russian reliance.
The new company, Gazprom Germania previously, is called Securing Energy for Europe GmbH (SEFE). It indirectly controls the country's largest gas storage facility in Rehden in the northwest.
Monday's decision comes after the EU commission agreed over the weekend to provide the company with 225.6 million Euros in aid, paving the way for the nationalization.
Germany's government argues that the move is necessary to protect its energy security, amid Russia's ongoing war in Ukraine.
Berlin had placed the company under its effective control back in April, leaving its ownership vague. The economy ministry said on Monday that that move had made business partners and banks reluctant to resume business relations or enter new ones.
"This jeopardises the continuation of SEFE's business operations and thus the gas supply," the ministry added, rationalizing its decision to nationalize.
Now a German state asset, the Russian Gazprom has effectively lost its shareholding in the company, the ministry said, DW reports.
