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Germany faces 5 billion euros a year hit by Russian gas sanctions – newspaper

The logo of Gazprom Germania is pictured at its headquarters, in Berlin, Germany, April 1, 2022. REUTERS/Fabrizio Bensch/File Photo

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BERLIN, June 5 (Reuters) – Russian sanctions against Gazprom Germania and its subsidiaries could cost German taxpayers and gas users an additional 5 billion euros ($5.4 billion) a year to pay for replacement gas, reports the weekly Welt am Sonntag, citing industry representatives. .

In May, Russia decided to stop supplying Gazprom Germania, which was Gazprom’s German subsidiary, after Berlin placed the company under trustee management due to the Russian invasion of Ukraine. Read more

Since then, energy regulator Bundesnetzagentur, acting as trustee, has had to buy replacement gas on the market to fulfill supply contracts with German municipal utilities and regional suppliers.

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The Ministry of Economy estimates that an additional 10 million cubic meters per day are needed, a ministry spokesman said, confirming a figure quoted by the newspaper.

“Quantities are purchased in the market and at market prices. No information can be given on exact quantities due to commercial confidentiality,” the spokesperson said in an email response.

Welt am Sonntag said the current cost would be around 3.5 billion euros per year and that additional costs could arise from the filling of the natural gas storage facility in Rehden commissioned on Wednesday by the Minister of Economy Robert Habeck, he said.

The newspaper also said the additional costs would be passed on to energy suppliers and end customers in the form of a gas tax from October.

The ministry spokesman said the supplies were not at risk.

($1 = 0.9330 euros)

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Reporting by Madeline Chambers Editing by Mark Potter and Raissa Kasolowsky

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