Germany faces 5 billion euros a year hit from Russian gas sanctions -newspaper -Breaking
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© Reuters. FILEPHOTO: Gazprom Deutschland’s logo can be seen in Berlin at its headquarters on April 1, 2022. REUTERS/Fabrizio Bensch/File PhotoBERLIN (Reuters). Russia’s sanctions on Gazprom (MCX) could result in Germania and its affiliates being liable for additional 5 billion Euros ($5.4 Billion) per year, according to the Welt am Sonntag, citing representatives from industry.
Russia cut off Gazprom Germania’s supply to Gazprom after Berlin had placed the German subsidiary under trustee management following Russia’s invasion in Ukraine.
The Bundesnetzagentur, as the trustee for the energy regulator, has been required to purchase replacement gas from the market in order to fulfill supply contracts with German municipalities utilities and regional suppliers.
According to a spokesperson for the ministry, an additional 10 million cubic metres per day is required by the economy ministry, which confirms a newspaper report.
The quantities were purchased on the market at market prices. The spokesperson stated that it was impossible to give exact figures due to commercial confidentiality.
Welt am Sonntag reported that the annual cost is currently around 3.5 billion euro per annum. Additional costs could be incurred by the filling up of Rehden’s storage facility, as Economy Minister Robert Habeck directed on Wednesday.
In the paper, it was also stated that the extra costs will be passed onto energy suppliers and customers as a result of a gas levie starting in October.
According to the ministry spokesperson, supplies were not in imminent danger.
($1 = 0.9330 euros)
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