June 25, 2022

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Ex-Gazprom Arm to Use $10 Billion German Loan to Boost Trading

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A former Gazprom unit now under the control of the German government plans to use a 10-billion euro ($10.4 billion) loan backed by Berlin to get back on the front foot in the energy market.

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(Bloomberg) — A former Gazprom unit now under the control of the German government plans to use a 10-billion euro ($10.4 billion) loan backed by Berlin to get back on the front foot in the energy market.   

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The lifeline will be used to replace natural gas supplies cut by Russian sanctions and pay down increasing amounts of collateral needed to back trades after prices surged, Egbert Laege, managing director of Gazprom Germania GmbH, said in an interview. The firm will soon be renamed Securing Energy for Europe GmbH after it was brought under German trusteeship in April to ensure enough supplies in the region’s largest economy. 

The loan “finally ensures the stabilization of the company and reestablishes the company as a key player in the European and German gas market,” said Laege, an EON SE veteran who took over the helm earlier this month. 

The company has several subsidiaries with offices from Houston to London and Singapore housing almost 1,700 employees. Rival firms had been hesitant to strike new deals in the aftermath of Russia’s invasion of Ukraine, but Laege and his team are now talking to “more than a dozen” companies about restoring trading and banking relationships,…

Bloomberg News

2022-06-16 07:48:05

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