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Germany Seizes Control of Gazprom Unit to Secure Gas Supply
Posted by: Steve G.
Date: April 04, 2022 10:41PM
Russkies get caught trying an ownership switch.
Nailed them!


(Bloomberg) -- BERLIN (AP) — Germany on Monday put a government agency in charge of a longtime German subsidiary of Russia's state-owned energy giant Gazprom after an opaque move last week by the parent company to cut ties with the unit.

Economy Minister Robert Habeck said Germany’s network regulator has been appointed as Gazprom Germania’s trustee until Sept. 30, with the right to dismiss and appoint managers. He said it is meant as a temporary measure to bring “order to the conditions” at the company.

“The German government is doing what is necessary to ensure security of supplies in Germany, and that includes not exposing energy infrastructure in Germany to arbitrary decisions by the Kremlin,” Habeck said.

He said Gazprom announced it was withdrawing from Gazprom Germania but didn’t give details on the new owners, which violates German rules on reporting acquisitions.

He said the unit is “of paramount significance” to natural gas trade, transport and storage in Germany and also is active in Switzerland and the Czech Republic.

The minister said officials have found out about an “indirect acquisition” of Gazprom Germania by entities called GSC Primary and Gazprom Export Business Services LLC.

He said German law calls for his ministry to give permission for acquisitions of critical infrastructure by any non-European Union investor, but it’s unclear who is behind those companies. He also said the buyer ordered Gazprom Germania’s liquidation, which isn’t allowed before a purchase has been approved.

It wasn't immediately clear what was behind Gazprom's move, which came amid tensions between Russia and Europe over natural gas deliveries.

Germany, which gets about 40% of its gas from Russia, is moving to reduce its dependence on Russian gas but has resisted calls for an immediate embargo on Russian energy imports.



Edited 1 time(s). Last edit at 04/04/2022 10:43PM by Steve G..
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Re: Germany Seizes Control of Gazprom Unit to Secure Gas Supply
Posted by: Racer X
Date: April 05, 2022 12:50AM
What's to stop Russia from closing the valves inside Russia?



********************************************
“A sword never kills anybody; it is a tool in the killer's hand.” Seneca the Younger

The police have no duty to respond. See Castle Rock v. Gonzales, 545 U.S. 748 (2005) or Warren v. District of Columbia[1] (444 A.2d. 1, D.C. Ct. of Ap. 1981)

Judge Lee wrote that “we cannot jettison our constitutional rights, even if the goal behind a law is laudable." 9th Circuit Court of Appeals

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Re: Germany Seizes Control of Gazprom Unit to Secure Gas Supply
Posted by: Sam3
Date: April 05, 2022 03:44AM
Quote
Racer X
What's to stop Russia from closing the valves inside Russia?

Money.

Russkies need all they can get now.



The arts are not luxuries but assets that give way more than they cost.
--Ronald Tucker on YouTube

A mind is like a parachute. It doesn't work if it is not open.
--Frank Zappa
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Re: Germany Seizes Control of Gazprom Unit to Secure Gas Supply
Posted by: Ted King
Date: April 05, 2022 06:47AM
Quote
Sam3
Quote
Racer X
What's to stop Russia from closing the valves inside Russia?

Money.

Russkies need all they can get now.

That seems likely. It's like a game of chicken. Putin says pay for natural gas in rubles by last Friday or else they may shut off the gas. The Germans respond by saying their contract with the Russians says they pay in euros. Friday passed and the natural gas to Germany is still flowing - but that doesn't mean that Putin couldn't still close the valves at any time and demand payment in rubles to turn the valves back on. Seems like so far Putin needs the money bad enough that he is willing - so far - to accept euros rather than risk getting no cash.



e pluribus unum



Edited 3 time(s). Last edit at 04/05/2022 06:56AM by Ted King.
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Re: Germany Seizes Control of Gazprom Unit to Secure Gas Supply
Posted by: cbelt3
Date: April 05, 2022 06:50AM
It also gets worse for Russia as spring has sprung. Natural gas demand is down and Europe can now survive without Russian gas. Putin's math shows that leverage disappears soon.

Hence the massive rocket bombardment of all of Ukraine that is going on right now.
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Re: Germany Seizes Control of Gazprom Unit to Secure Gas Supply
Posted by: Ted King
Date: April 05, 2022 07:13AM
If you have a New York Times subscription, here is an article that goes into depth about the dynamics involving the ruble and payment for Russian fossil fuels:

[www.nytimes.com]

The author even uses the term "game of chicken". I promise I made my earlier post before I read this article. :-)

And I agree with cbelt about Russia's leverage getting to be less as demand for natural gas for heating in Europe is reduced. Putin was probably not so happy that to get China's "support" that he had to wait for the Chinese sponsored Olympics to end (he invaded just a few days after it ended) so as not to poop on their international parade.



e pluribus unum
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Re: Germany Seizes Control of Gazprom Unit to Secure Gas Supply
Posted by: Racer X
Date: April 05, 2022 02:54PM
I completely agree about shrinking leverage.



********************************************
“A sword never kills anybody; it is a tool in the killer's hand.” Seneca the Younger

The police have no duty to respond. See Castle Rock v. Gonzales, 545 U.S. 748 (2005) or Warren v. District of Columbia[1] (444 A.2d. 1, D.C. Ct. of Ap. 1981)

Judge Lee wrote that “we cannot jettison our constitutional rights, even if the goal behind a law is laudable." 9th Circuit Court of Appeals

[www.youtube.com]
Options:  Reply • Quote
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