The European Commission has given the green light to Germany’s plan to become 100% owner of energy giant SEFE Securing Energy for Europe, formerly known as Gazprom Germania.
The EU executive has approved a German aid measure of 225.6 million euros to support the company, which is currently under the supervision of Berlin.
“We welcome the change in ownership of SEFE, which will allow Germany to seek new gas suppliers while ensuring security of supply,” Commission Executive Vice-President Margrethe Vestager said in a statement on Saturday. communicated.
German-based energy companies have been hit with cash flow problems and financial losses after Russia’s Gazprom stopped delivering agreed gas supplies amid the war in Ukraine.
In September, the German government said it was considering bailing out SEFE. Berlin has decided to nationalize other energy giants, including Uniper and the local subsidiary of Rosneft, and is said to be in talks with VNG.
“The Commission has found the German measure to be necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State,” according to the SEFE statement.
At the end of October, Brussels proposed to change state aid rules again in the event of a crisis to allow governments to provide state guarantees to energy companies to cover the cost of doing business as prices remain high and volatile.