Russia sanctions Western European units of Gazprom and the owner of the Polish part of the gas pipeline

The logo of Gazprom Germania is pictured at its headquarters, in Berlin, Germany, April 1, 2022. REUTERS/Fabrizio Bensch

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LONDON, May 11 (Reuters) – Russia has imposed sanctions on units of Gazprom Germania, of which its gas producer Gazprom (GAZP.MM) has handed over ownership, as well as on EuRoPol GAZ SA, which owns the Polish part Yamal-Europe gas pipeline.

The list of sanctioned entities published by the Russian government on its website Wednesday included 31 companies based in countries that imposed sanctions on Russia in response to its invasion of Ukraine.

It notably includes local subsidiaries of Gazprom, supplier of more than a third of European gas, largely via the Yamal-Europe gas pipeline.

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With assets and subsidiaries in Germany, Great Britain, Switzerland, Belgium, the Czech Republic and outside Europe, Gazprom’s various activities are essential for the European gas market and its supply to industries and households. .

Gazprom Germania’s activities, based on Russian gas production, cover supply to wholesalers and retailers, storage and pipeline transportation, covering the entire gas value chain.

Its operations include Germany’s largest gas storage facility at Rehden in Lower Saxony, with a capacity of 4 billion cubic meters.

The list published on Wednesday does not give details of the sanctions to be imposed.

However, under a decree issued by President Vladimir Putin on May 3, no Russian entity is allowed to enter into agreements with sanctioned entities or fulfill its obligations under existing agreements. Read more

The decree explicitly prohibits the export of products and raw materials to persons and entities on the sanctions list.

Putin presented the decree as a response to what he called illegal actions by the United States and its allies aimed at depriving “the Russian Federation, citizens of the Russian Federation and Russian legal persons of rights of property” or to restrict their property rights.

The United States and its allies have imposed the toughest sanctions in modern history on Russia and Moscow’s business elite, moves Putin presents as a declaration of economic warfare.

Putin, 69, has repeatedly warned that Moscow will react in kind, although until last week the toughest economic response from the Kremlin had been to cut gas supplies to Poland and Bulgaria and to demand a new payment system for European gas buyers.

Germany’s energy grid regulator has taken control of Gazprom Germania’s operations after Gazprom dumped it last month without explanation. Read more

Wingas, a subsidiary of Gazprom Germania and one of Germany’s largest gas traders, said after the takeover it would operate under the changed parameters.

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Reuters reporting; Editing by Kevin Liffey and Alex Richardson

Our standards: The Thomson Reuters Trust Principles.

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