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German govt pushes for state-owned company SEFE to end gas supply contract with Russia

German govt pushes for state-owned company SEFE to end gas supply contract with Russia Illustrative photo (Photo: Getty Images)
Author: Daria Shekina

A nationalized firm in Germany, which was formerly associated with multinational energy corporation Gazprom, is to cease cooperation with Russia in the sphere of gas procurement, according to a statement from Philip Steinberg, an official from the German Ministry of Economic Stabilization and Energy Security.

It is reported that the company Securing Energy for Europe GmbH, known as SEFE, has an outdated contract it is trying to get rid of through various means.

"This is something that needs to be terminated asap," Steinberg wrote.

He also notes that the German government has to deal with "certain facts."


Germany nationalized the company during the height of the energy crisis in Europe last year.

Last week, it was reported that Securing Energy for Europe GmbH planned to ship LNG produced at the Yamal plant in Siberia early next month.

Critics argued that this contradicts Germany's promise to avoid using Russian LNG after the start of Russia's war against Ukraine.

"This contradicts pretty much everything the German government has said on the subject in the past," said Christian Leye, a member of the opposition Left Party.

Gas supply from Russia to Europe

The EU has stated that it could survive the winter without Russian gas if Moscow were to stop its supply. The spokesperson for the U.S. House of Representatives, Kevin McCarthy, has stated America's intention to replace Russia in the European gas market.

Spain has been increasingly relying on Russian natural gas, with its deliveries in July increasing by 65% compared to the previous year.

Recently, Deputy Head of the European Commission Maroš Šefčovič stated that a complete cessation of Russian gas supplies was nearly an impossible task for EU countries at that moment.