EC approves German takeover of Russian Gazprom subsidiary

The EU Commission approved the disbursement of €225.6 million ($233.73 million) in aid for Gazprom Germania on Saturday, clearing the way for Germany to completely take over the subsidiary of Russian-owned energy corporation Gazprom, reported dpa.

Now under the trusteeship of the Federal Network Agency, the company name has been changed to Securing Energy for Europe (SEFE).

According to a press release from the commission, SEFE will replace Gazprom Export LCC "in order to safeguard the security of gas supply to the German economy."

The measure follows Temporary Crisis Framework provisions, according to the commission. This allows companies to receive solvency support in the energy crisis in the case that private funding is insufficient.

SEFE suffered significant losses following the Russian invasion of Ukraine. Making up 14% of the German gas market supply and 28% of gas storage, the company is crucial to Germany's economic interests.

In April, Vice Chancellor and Economy Minister Robert Habeck appointed the network agency as a trustee because of issues with legal uncertainties and a breach in procedures. The aim, he said, was to guarantee supply security.

In mid-June, the government provided support to SEFE, then Gazprom Germania, with billions to prevent bankruptcy.