Germany boosts energy security with $10 bln Gazprom Germania plan (updated)

Century Casinos

14/06/2022 16:58

(Adds detail, background)
    BERLIN, June 14 (Reuters) - Germany will put Gazprom
Germania, the energy business abandoned by Russia's Gazprom in
April, under long-term administration and back it with a loan of
around 10 billion euros ($10.4 billion) to help bolster the
security of Europe's energy supplies. 
    The energy trading, storage and transmission business, which
Gazprom ditched following Russia's invasion of Ukraine in
February, will be renamed Securing Energy for Europe GmbH, the
German government said in a statement
    A government source said state investment bank KfW would
support the company with a loan of between 9 and 10 billion
euros designed to ensure the continuity of a business that is
important for Europe's energy supplies.
    The new, long-term arrangement will allow administrators to
focus on securing energy supplies. Under the previous,
short-term agreement, administrators' primary duty would have
been to preserve the company's capital for its original owner,
the Russian state.
    German Finance Minister Christian Lindner said the
state-guaranteed loans would have no implications for the
federal budget.
    "They are just guarantees," he said.
    Gazprom Germania's intertwined network of units includes
trader Wingas and storage firm Astora, which operates 6 billion
cubic metres of underground gas caverns in Germany and Austria.
    UK arm Gazprom Marketing & Trading provides fuel to
consumers including factories, restaurants and the National
Health Service, which has caused concerns in Britain that could
be alleviated by the German move.
    ($1 = 0.9606 euros)

 (Reporting by Thomas Escritt in Berlin and Christian Kraemer in
Sofia
Editing by Miranda Murray and Mark Potter)
 ((thomas.escritt@thomsonreuters.com; @tomescritt; +49 30 2201
33579;))