The government is taking measures against the crisis that include taking control of energy companies.
German authorities are preparing for any sudden shutdown in Russia’s gas supplies with an emergency package that could include taking control of critical companies. On Tuesday, May 10, with reference to three officials familiar with the issue, Reuters reports.
It was noted that the preparations carried out by the country’s Ministry of Economy indicate a high level of concern about gas supply, which boosts Europe’s largest economy and is critical for the production of steel, plastics and cars.
Details are now being worked out on how Berlin will implement the plan, officials said.
The government will support providing additional loans and guarantees to support energy companies to help them cope with rising prices, three officials said, and could take critical companies such as oil refineries under of its wings.
Last month, Berlin approved a legislative amendment allowing it to control energy companies.
He is now discussing how he could use the proposal in practice, such as taking control of the Russian-owned PCK refinery Rosneft in Schwedt near Poland, two sources said. This is the reason for most of Germany’s remaining oil imports to Russia and could be hit by an EU oil embargo.
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One of the interlocutors said that the option of nationalization of energy companies is being considered, but it must be carefully weighed and justified on the grounds of security of energy supply, and not Russia’s sanctions.
Germany could also buy stakes in other companies, said two people familiar with the matter. It took a similar step in 2018 when state-owned development bank KfW bought 20% of the 50 Hertz power grid operator to showcase China’s state power grid offer.
The government’s final emergency package has not yet been developed. One of the sources warns that the acquisition of minority stakes in the companies and the intervention at the Schwedt refinery are still being discussed, but a decision has not yet been made.
Officials are also investigating how KfW can alleviate pressure on critical companies by supporting them with additional loans or lines of emergency credit that they can use if energy prices rise.
Germany is also studying how it will ration gas in an emergency. Its regulator is considering whether to prioritize industry over households, which would be a reversal of the current policy of closing businesses first.
It was previously reported that Germany had begun to build the first terminal for liquefied natural gas.
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Source: korrespondent
