Germany is considering nationalizing Gazprom and Rosneft’s plants in the country, the business newspaper Handelsblatt reported, citing government sources. The two Russian energy giants have a significant footprint in Europe’s largest economy, with Gazprom Germania having gas storage facilities and Rosneft Deutschland accounting for a quarter of Germany’s refineries, per Handelsblatt. Berlin is also considering expropriating Gazprom assets by forcing the giant to sell its gas storage facilities across Germany, Politico reported on Friday, citing a government official and two others who had been informed of the plans. The plans to nationalize Gazprom and Rosneft units in Germany – which Handelsblatt first reported on Thursday – were approved by the ruling coalition, the business newspaper reported on Sunday. “The situation is serious and requires urgent action,” said Berd Westphal, a spokesman for Chancellor Olaf Solz’s Social Democrat parliamentary group, according to Handelsblatt. If the energy companies were nationalized, they would come under the control of the German authorities, thus easing Russia’s influence in energy security in Germany and better ensuring the continuity of supply. The move comes as Germany seeks to boost the country’s energy security amid the war in Ukraine. Last week, Germany launched an emergency plan to deal with disruptions in its gas supply after Russian President Vladimir Putin demanded payment in rubles. Germany is now in the “early warning phase” of its energy emergency plan, with Berlin calling on all consumers – from industry to households – to save energy and reduce consumption. If the situation worsens, the country could begin to block gas in the last of the three-phase plan with industry leading the way for power outages, as described by the German Economy Ministry. The move could ruin the economy and lead to job losses. Russian gas accounted for 55% of Germany’s gas imports in 2021 and 40% of its gas imports in the first quarter of 2022, Reuters reported. The country has pledged to end its use of Russian gas by 2024, Economy Minister Robert Hubbek said in a March 25 press release. Kremlin spokesman Dmitry Peshkov spoke out against reports that Berlin might nationalize its Gazprom and Rosneft plants, saying it would be against international law, Reuters reported on Friday.
Not extreme
Germany is not the only country that has thought of nationalizing Russian energy assets since the start of the war in Ukraine. In March, the Financial Times and Bloomberg reported that the United Kingdom was preparing to temporarily nationalize Gazprom’s British retail supply unit as it risked collapsing and disrupting supplies. The UK move appeared to be planned, the FT said, to save Gazprom’s own unit as customers abandoned it due to the war in Ukraine. Berlin is also considering restructuring options for Wingas, a Gazprom subsidiary, Bloomberg reported on Friday, citing insiders. Wingas supplies about one-fifth of the German gas market, according to Bloomberg. Gazprom, meanwhile, announced on Friday that it had closed its stake in Gazprom Germany and all of its assets, including Gazprom Marketing and Trading, S&P Global Commodity Insights said in a statement. The German Ministry of Economy, Gazprom Germania and Rosneft Deutschland did not immediately respond to Insider’s requests for comment, which were sent out of schedule.
