Russia cut off gas supplies to Gazprom Germany

Russia has cut off gas supplies to a Gazprom plant seized by Germany in retaliation for Western sanctions over the war in Ukraine, according to Bloomberg.

Gazprom Germania and its subsidiaries no longer receive all contract quantities, said German Economy Minister Robert Habeck. Europe’s largest economy and the largest buyer of Russian gas receives gas from alternative sources and may face a shutdown, he added.

Moscow has banned transactions with Gazprom Germania and its various subsidiaries, which are now under the control of the German energy regulator. This includes energy supplier Wingas, a European gas storage company, the commercial arm of Gazprom based in London and EuRoPol Gaz, owner of the Polish section of the Yamal-Europe pipeline connecting Russia with Germany.

“The situation is that the gas market can offset the loss of gas from Russia,” Habeck said.

Germany temporarily took control of Gazprom Germania last month to ensure security of supply. Most of the group’s companies had come under pressure after customers and business partners refused to work with them after the Russian invasion of Ukraine. This has created the risk that the owners of key European energy infrastructures will not be able to survive.

Habek noted that Russia’s decision to impose sanctions on Gazprom Germania “shows that the energy dispute is a weapon” and that “energy can be used dynamically in an economic conflict.”

“We are closely monitoring the situation,” Habeck said in a speech to the lower house in Berlin. “We have prepared for the situation and we will keep you informed during the day.”