Commission has approved German Aid measure to support SEFE Securing Energy for Europe GmbH (‘SEFE GmbH’). The amount is near than 225,6 million euro. The measure will allow the German State to take the 100% ownership of SEFE GmbH replacing Gazprom Export LCC, in order to safeguard the security of gas supply to the German economy.

The measure follows the principles set out in the State aid Temporary Crisis Framework, according to which companies severely affected by the current crisis, in particular energy companies, may receive solvency support when private sources alone are not sufficient.

SEFE GmbH, a systemic energy company in Germany, previously named Gazprom Germania GmbH, has a 14% share in the gas supplies market in Germany and is active also in other Member States. In addition, it owns and operates 28% of the gas storage serving the German market and owns gas pipelines in Germany and other Member States.

Following Russia’s aggression against Ukraine and the subsequent disruption of gas deliveries by Gazprom, SEFE GmbH has incurred serious losses.

Under the planned measure, the existing registered capital of 225.6 million euro will be set to zero, which will de facto end the ownership of the present Russian shareholder. SEFE GmbH will then issue new ordinary shares to the same nominal amount. The present measure will therefore not change the equity of SEFE GmbH. The new shares will be subscribed by Germany.

Source: State aid: Commission approves €225.6 million German measure to support energy company SEFE GmbH