Please try another search
© Reuters. FILE PHOTO: The logo of Gazprom Germania is pictured at their headquarters, in Berlin, Germany April 1, 2022. REUTERS/Fabrizio Bensch/File Photo
BERLIN (Reuters) - Russia's sanctions against Gazprom (MCX:GAZP) Germania and its subsidiaries could cost German taxpayers and gas users an extra 5 billion euros ($5.4 billion) a year to pay for replacement gas, the Welt am Sonntag weekly reported, citing industry representatives.
In May, Russia decided to stop supplying Gazprom Germania, which had been the German subsidiary of Gazprom, after Berlin put the company under trustee management due to Russia's invasion of Ukraine.
Since then, the Bundesnetzagentur energy regulator, acting as trustee, has had to buy replacement gas on the market to fulfil supply contracts with German municipal utilities and regional suppliers.
The economy ministry estimates an extra 10 million cubic meters per day are required, said a ministry spokesperson, confirming a number cited by the newspaper.
"The quantities are procured on the market and at market prices. No information can be given on the exact amounts due to commercial confidentiality," said the spokesperson in an emailed response.
Welt am Sonntag said the current cost would be about 3.5 billion euros a year and that further costs could arise from the filling of the Rehden natural gas storage facility which Economy Minister Robert Habeck ordered on Wednesday, it said.
The paper also said the additional costs would be passed on to energy suppliers and end customers in the form of a gas levy from October.
The ministry spokesperson said supplies were not at risk.
($1 = 0.9330 euros)
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.