Since the Russian gas deliveries fail, Sefe and Uniper have to replace the missing gas from Russia with gas purchased at a significantly higher price in order to be able to meet the delivery obligations to their customers.
(Photo: Reuters)
Berlin After Uniper, now Sefe: The federal government is nationalizing the gas wholesaler, which was called Gazprom Germania until the spring. The Federal Ministry of Economics announced on Monday that the company, which previously belonged to the Russian gas giant Gazprom, will be taken over completely. Sefe is over-indebted and bankruptcy is imminent. We want to prevent that.
Sefe has been under federal trusteeship since the beginning of April. This was preceded by the announcement by the Russian parent company that they wanted to “give up” the German subsidiary. Ownership was to be transferred to two completely unknown Russian companies. The Federal Ministry of Economics put a stop to this project with reference to the Foreign Trade Act.
The Foreign Trade Act stipulates that the acquisition of critical infrastructure by non-EU investors requires the approval of the Federal Ministry of Economics. The Ministry refused this approval.
Government circles said on Monday that the federal government would remain the owner “at least until the end of winter 2023/2024”. Privatization will only be considered once the gas markets have calmed down over the long term.
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The company’s losses amounted to more than three billion euros as of the end of August, it said. This is offset by equity of almost one billion euros. Since the value of the company is thus negative, they are firmly convinced that the previous owner, Gazprom Germania, will not have to pay any compensation for the expropriation.
Supply obligations are met with gas that is purchased at a higher price
Like the gas importer Uniper, Sefe is facing massive problems. Since the Russian gas deliveries fail, Sefe and Uniper have to replace the missing gas from Russia with gas purchased at a significantly higher price in order to be able to meet the delivery obligations to their customers.
After Uniper, now Sefe: The federal government is nationalizing the gas wholesaler, which was called Gazprom Germania until the spring.
(Photo: AP)
For every cubic meter of gas that the companies sell, they pay extra. Uniper alone has lost 100 million euros a day in the past few months, and even more on some days. The federal government announced the nationalization of Uniper a few weeks ago. The step should be completed by the end of the year.
To make matters worse, business partners and banks are ending their business relationships with Sefe or not wanting to start new ones due to the unclear ownership structure, the Ministry of Economic Affairs said. This endangers the continuation of Sefe’s business operations and thus the gas supply.
>> Read here: Rescue package of eight billion euros – the federal government takes over Uniper
In the case of the oil company Rosneft Germany, which is also under trusteeship under the Energy Security Act EnSiG, the situation is different. The company, a subsidiary of the Russian oil company Rosneft, has good capital resources and there is no risk of over-indebtedness, according to government circles.
Fresh capital for Sefe
The Federal Ministry of Economics puts the volume of capital measures at Sefe at around eight billion euros. However, little fresh money flows. Instead, loans from the state-owned KfW will be converted into equity (“debt-equity swap”) in the amount of 7.5 billion euros.
KfW will not suffer any loss because the federal government has released them from this. The money is not lost; in the case of privatization, the public sector can theoretically even make a profit.
At the same time, the federal government ordered a capital increase at Sefe. Securing Energy for Europe Holding GmbH was founded for this purpose and is the sole property of the federal government.
As part of the capital cut, it gradually brings fresh share capital into Sefe, totaling EUR 225.6 million, and thus takes it over as the sole new shareholder. This completes the change of ownership.
On Saturday, the EU Commission cleared the way for nationalization by approving the granting of 225.6 million euros in fresh share capital. This was necessary because it is a subsidy.
The justification for the capital measures was that a “cascade effect” had to be avoided, which could have occurred in the event of Sefe’s insolvency. The ministry refers in particular to Wingas, which belongs to Sefe and has numerous municipal utilities as customers.
>> Read here: EU Commission approves German takeover of Gazprom subsidiary
Wingas’ market share in Germany is around 20 percent. “An insolvency of Wingas would force the downstream trade and consumer levels to purchase replacements at short notice, which can lead to further insolvencies and supply gaps,” the ministry said.
More: Cold withdrawal of Russian gas – Germany is threatened with an emergency winter