%20to%20bail%20out%20a%20former%20unit%20of%20Russia's%20Gazprom%20that%20the%20German%20government%20expropriated%20earlier%20this%20year.img%20class=%20wp-image-5283%20aligncenter%20src=https://ibekachikwu.com/wp-content/uploads/2022/06/46c73fe7-58e3-4f35-b9a4-60035f5151af-300x101.jpg%20alt=%20width=377%20height=127%20/Gazprom%20Germania%20GmbH%20was%20Gazprom's%20German%20subsidiary%20until%20April,%20when%20the%20German%20government%20placed%20it%20under%20the%20trusteeship%20of%20the%20German%20energy%20regulator%20to%20assure%20supply%20security%20following%20Russia's%20invasion%20of%20Ukraine.In%20reaction%20for%20Western%20sanctions,%20Gazprom%20ceased%20gas%20delivery%20to%20Gazprom%20Germania%20last%20month,%20and%20Russia%20slapped%20restrictions%20on%20Gazprom's%20European%20companies,%20prohibiting%20them%20from%20exporting%20Russian%20gas.%20Gazprom%20Germania%20has%20had%20to%20purchase%20gas%20on%20the%20spot%20market%20at%20higher%20prices%20due%20to%20the%20lack%20of%20Russian%20gas.According%20to%20Bloomberg's%20sources,%20the%20German%20government%20could%20authorise%20a%20loan%20to%20Gazprom%20Germania%20of%20between%20$5.2%20billion%20(5%20billion)%20and%20$10.4%20billion%20(10%20billion)%20through%20state-owned%20bank%20KfW%20Group.%20The%20loan%20might%20come%20as%20soon%20as%20this%20week,%20according%20to%20Bloomberg's%20sources,%20who%20also%20cautioned%20that%20plans%20aren't%20set%20in%20stone%20and%20could%20change.Germany%20is%20a%20key%20importer%20of%20Russian%20natural%20gas%20and%20has%20been%20planning%20for%20nearly%20three%20months%20in%20case%20fossil%20fuel%20supplies%20from%20Russia%20are%20delayed,%20either%20due%20to%20sanctions%20or%20punitive%20actions%20by%20Moscow%20to%20limit%20or%20cut%20off%20natural%20gas%20supplies.){kind=link}
According to Bloomberg on Monday, Germany could lend up to $10.4 billion (10 billion euro) to bail out a former unit of Russia’s Gazprom that the German government expropriated earlier this year.
Gazprom Germania GmbH was Gazprom’s German subsidiary until April, when the German government placed it under the trusteeship of the German energy regulator to assure supply security following Russia’s invasion of Ukraine.
In reaction for Western sanctions, Gazprom ceased gas delivery to Gazprom Germania last month, and Russia slapped restrictions on Gazprom’s European companies, prohibiting them from exporting Russian gas. Gazprom Germania has had to purchase gas on the spot market at higher prices due to the lack of Russian gas.
According to Bloomberg’s sources, the German government could authorise a loan to Gazprom Germania of between $5.2 billion (5 billion) and $10.4 billion (10 billion) through state-owned bank KfW Group. The loan might come as soon as this week, according to Bloomberg’s sources, who also cautioned that plans aren’t set in stone and could change.
Germany is a key importer of Russian natural gas and has been planning for nearly three months in case fossil fuel supplies from Russia are delayed, either due to sanctions or punitive actions by Moscow to limit or cut off natural gas supplies.