Gazprom Germania will be handed a loan of up to €10 billion (£8.6bn), the German Government has confirmed.
Officials have said that the aim is to place the firm into a long-term administration regime.
It is reported that the loan will help the company avoid insolvency.
In the statement, the German Government added: “With this approach, the government can maintain control over this part of critical infrastructure and prevent threats to energy security.”
A government spokesperson told Reuters news agency that the firm will also be renamed Securing Energy for Europe GmbH.