Germany Nationalises Gazprom Subsidiary: Ministry

Germany announced Monday it was nationalizing a former subsidiary of Russian energy giant Gazprom, saying the step was necessary because of the systemic importance of the company for power supplies in the country.

The company Securing Energy for Europe GmbH (SEFE) was previously known as Gazprom Germania. It is a network operator, and indirectly controls Germany's largest gas storage facility in the northwestern town of Rehden.

In the wake of Russia's spop in Ukraine and Moscow's decision to dwindle energy supplies to Europe, Berlin had placed the company under its effective control in April, but the ownership of the company had remained unclear.

As a result, business partners and banks have suspended business relations with the company or are reluctant to enter into new ones, the economy ministry said.

"This jeopardises the continuation of SEFE's business operations and thus the gas supply," it added.

Germany was therefore formerly nationalising the company and turning it into a state asset.