Dutch organizations can choose Gazprom Germania successor after German nationalization

Dutch municipalities and other public organizations who had an energy contract with the German subsidiary of Russia’s state-owned Gazprom will not have to seek out a new provider, said Climate Minister Rob Jetten. The European Commission allowed the German government to nationalize SEFE Energy this week, formerly known as Gazprom Germania.

“Due to this change in ownership structure, the company no longer falls under the European sanctions rules,” the Ministry of Economic Affairs in a statement. The sanctions were put in place due to the Russian invasion of Ukraine.

Previously, organizations including municipalities, schools, and sports clubs which wanted to work with SEFE Energy needed an exemption to either extend a contract or enter into a new agreement. Regardless, many clients were looking for a new provider to ensure their money did not wind up in Russian coffers.

“It is good news that the German government and the European Commission have reached agreement on the nationalization of SEFE Energy. This step further safeguards energy security in the EU and ensures that no Dutch money disappears through the back door to Russian shareholders,” Jetten said.

As clients went energy shopping, they often faced higher costs as a result. Those organizations will receive a subsidy to help cover the cost incurred from 10 October through the end of the year. More funding may be available for those affected from 1 January, as well. The subsidy will likely be paid in the middle of next year, the ministry said.