German national flag over the Bundestag building in Berlin. File photoBERLIN, June 14 The German government has decided to extend the trusteeship of the former German division of Gazprom, Gazprom Germania Gmbh, and provide the company with a loan to avoid bankruptcy, the press service of the Cabinet reported. that the German authorities are preparing to take such measures, the media reported.Nord Stream gas flow to be halted for two weeks due to inspection»To ensure the security of Germany's supply, the government will ensure the long-term trusteeship of Gazprom Germania and protect the company, which is in distress due to Russian sanctions, from bankruptcy. With this step, the government retains influence on this part of the critical energy infrastructure and prevents threats to energy security,” the press service of the Cabinet of Ministers said in a statement. It was previously assumed that the trustee management of the company would last until September 2022 with a possible extension. Now the Cabinet of Ministers has officially extended external management with the possibility of multiple extensions of its term in accordance with the recently adopted amendments to the law on energy security. As specified in the Cabinet, the allocation of a loan through the Bank for Reconstruction (KfW) will prevent a «cascade effect» in the energy market, when the bankruptcy of one company may affect the rest of the industry. The borrowed funds will be used to maintain liquidity and purchase gas, while the government specifically emphasizes that it guarantees that the borrowed funds «will not go to Russia», but will be used only to support the operation of the enterprise. The government is exploring the possibility of converting the company's loan into equity in the future in the future. The government has also decided to rename the company, now it will be called Securing Energy for Europe Gmbh, abbreviated SEFE («Securing Energy for Europe»), «to send a clear signal to the market that the purpose of these measures is to guarantee the energy security of Germany and Europe».
Gas prices in Europe are rising by more than ten percent
