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UK-based Gazprom units say German move has secured their future

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By Reuters
UK-based Gazprom units says German move has secured their future
UK-based Gazprom units says German move has secured their future   -   Copyright  Thomson Reuters 2022

LONDON – The British-based subsidiary of Gazprom said Germany’s decision to take control of its parent had removed any concerns about the viability and future of its operations, and it would look to rebrand soon.

UK-registered Gazprom Marketing & Trading (GMT) buys gas on wholesale energy markets and owns a number of subsidiaries including in Switzerland, France, Mexico and Singapore.

Its British subsidiary, Gazprom Energy, supplies industrial companies including parts of the National Health Service.

Some customers had sought to cut ties with the business as part of Western efforts to shun Russia, industry sources had told Reuters, sparking alarm about the broader market impact if the business collapsed.

Both GMT and Gazprom Energy said late on Monday that any doubts about the companies had been erased after the German state took control of their immediate owner, Gazprom Germania, following the sudden withdrawal of ultimate parent Gazprom.

“This completely removes with immediate effect any concerns about the viability and future of GM&T and its subsidiaries(including Gazprom Energy) since ultimate control is now held indirectly by the German state and not by PJSC Gazprom,” it said on its website.

“Given the operational and financial independence of GM&T from PJSC Gazprom, there are no adverse financial or other implications from the actions of the German government.” ​

The statement said the business would announce any future steps, such as a rebranding.

British households and businesses have been hard hit by the surge in energy costs, with a 54% jump in the regulatory price cap in April and a string of energy suppliers collapsing in recent months.

Britain could have taken control of the UK Gazprom subsidiaries to maintain supply if needed, however that would have been expensive and customers were worried about what that would mean for their hedged contracts.