Written by Joseph Nasr and Markus Wacket

BERLIN, (Reuters) – German energy firms that have been affected by Kremlin sanctions were able to seek alternatives to Russian natural gas, Economy Minister Robert Habeck announced on Thursday. He also said the regulator of the network would offer details.

Russia has put sanctions on European subsidiaries of Gazprom (MCX) – including Gazprom Deutschland, which is an energy trading, storage, and transmission company that Germany had placed under trusteeship in order to protect supplies.

Habeck said that Gazprom was and the subsidaries of Gazprom were affected. According to Habeck, some subsidiary companies will no longer receive gas from Russia. However, the market offers alternatives. “They are buying gas from the market.”

Russia’s sanction and an EU plan for Russian oil import bans drove up energy prices Tuesday, underscoring the economic cost of the EU’s effort to break the hold of Russian energy imports as a response to Ukraine’s invasion.

Vladimir Putin’s decree forbids exports of goods and raw materials to individuals and entities that are on the Sanction List. It includes the Yamal pipeline, which transports Russian gas from Poland to Europe.

One-third of the European Union’s gas comes from Russia. The EU is divided on how fast and in what way it will phase out Russian imports. Hungary opposed the ban on Russian oil.

We are closely monitoring the situation. “We have been prepared for this situation. Habeck stated that regulators will notify you of the situation later in today. The market can compensate for Russian gas, but the current situation does not allow it to. The conflict shows that energy can be used as a weapon.

Russia includes Germany’s largest storage facility for gas, Rehden in Lower Saxony. With 4 billion cubic metres capacity, it is operated by Astora as well as Wingas (a trader who supplies industry and utilities).

Wingas stated that it will continue to operate under these new conditions, but would have to be subjected for shortages.

Potential sources of supply for the market could include Rivals Uniper and VNG.

RWE CEO Michael Mueller claimed that sanctions did not affect his gas storage facilities.

He said, “In light of a potential gas embargo,” that we had made provision for our Russian supplies contracts. From the outbreak of war to 2023, our total exposure was 15 terawatts. Now, our total exposure is less than four terawatts.