The European Commission has given the green light for Germany’s plan to take 100% ownership of energy giant Securing Energy for Europe (SEFE), formerly Gazprom Germania.
It has approved a €225.6 million (£198m) aid measure to support SEFE, replacing Gazprom Export – a majority state-owned Russian company – in order to safeguard the security of gas supply to the German economy.
SEFE, which has a 14% share in the gas supply market in Germany and is also active in other member states, owns and operates 28% of the gas storage serving the German market and owns gas pipelines in Germany and other member states.
The company has incurred serious losses following Russia’s war against Ukraine and the subsequent disruption of gas delivered by Gazprom.
On 4th April 2022, due to the attempted transfer of shares and liquidation by its Russian shareholder, SEFE was placed under the trusteeship of Germany to be able to continue doing business and ensure security of supply.
Germany now intends to assume full ownership of the company to continue business relations with market participants and be able to keep serving its customers.
Under the planned measure, the existing registered capital of €225.6 million will be set to zero, which will de facto en the ownership of the present Russian shareholder, following which SEFE will issue new ordinary shares to the same amount.
The Commission said it found the German measure to be “necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a member state”.
Margrethe Vestager, Executive Vice-President in charge of competition policy said: “Gazprom’s disruption of gas deliveries is showing Russia’s unreliability as a supplier. Many importers of Russian natural gas, with fixed delivery contracts concluded with customers before the crisis, are currently not being served. Any disorderly failure to fulfil these fixed contracts can have severe consequences for customers and for the German economy.
“So, we welcome the change of ownership of SEFE, which will enable Germany to search for new gas suppliers while ensuring security of supply.”
