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Germany offers €9-10 billion rescue for former Gazprom subsidiary

Germany on Tuesday agreed to offer a bailout worth up to €10 billion to Russian energy giant Gazprom's former subsidiary in Germany, which has been placed under state control.

Published: 14 June 2022 17:53 CEST

The logo of Gazprom Germania, a former subsidiary of Gazprom Export of the Russian gas supplier Gazprom. Photo: picture alliance/dpa | Paul Zinken

The funds, which a government source said would amount to between nine and 10 billion euros, will be used to “secure liquidity and to procure replacement gas”.

They will also be used exclusively to keep Gazprom Germania in business and to maintain energy supplies, and “cannot flow to Russia”.

Russia cut off supplies to the subsidiary, Gazprom Germania, in retaliation for Germany’s decision in April to temporarily take control of the unit.

Berlin seized the subsidiary after Russian state-owned Gazprom unexpectedly said it was withdrawing from Gazprom Germania, without disclosing a new ownership structure.

READ ALSO: Germany takes temporary control of Gazprom subsidiary

Wary that this could leave the key energy company operating critical infrastructure in Europe’s biggest economy in limbo, the German government stepped in.

The German unit holds several key energy assets, including natural gas supplier Wingas, which has a market share of around 20 percent in Germany, gas storage firm Astora, a London-based trading arm and other foreign subsidiaries.

Berlin on Tuesday also decided to prolong its control over Gazprom Germania beyond the initially planned September 30th.

Germany has backed sweeping Western sanctions against Moscow over its invasion of Ukraine.

It is racing to wean itself off Russian energy imports but because of its heavy reliance on Russian gas, it has resisted imposing an immediate halt on the supply.

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Germany, Czech Republic accuse Russia of cyberattacks

The accusations come at a time of strained relations between Moscow and the West following Russia’s 2022 invasion of Ukraine and the European Union’s support for Kyiv.

German Foreign Minister Annalena Baerbock said a newly concluded government investigation found that a cyberattack targeting members of the Social Democratic Party had been carried out by a group known as APT28.

APT28 “is steered by the military intelligence service of Russia”, Baerbock told reporters during a visit to Australia.

“In other words, it was a state-sponsored Russian cyberattack on Germany and this is absolutely intolerable and unacceptable and will have consequences.”

APT28, also known as Fancy Bear, has been accused of dozens of cyberattacks in countries around the world. Russia denies being behind such actions.

The hacking attack on German Chancellor Olaf Scholz’s SPD party was made public last year. Hackers exploited a previously unknown vulnerability in Microsoft Outlook to compromise e-mail accounts, according to Berlin.

Berlin on Friday summoned the acting charge d’affaires of the Russian embassy over the incident.

The Russian embassy in Germany said its envoy “categorically rejected the accusations that Russian state structures were involved in the given incident… as unsubstantiated and groundless”.

Arms, aerospace targeted: Berlin

German Interior Minister Nancy Faeser said the cyber campaign was orchestrated by Russia’s military intelligence service GRU and began in 2022. It also targeted German companies in the armaments and aerospace sectors, she said.

Such cyberattacks are “a threat to our democracy, national security and our free societies”, she told a joint news conference in Prague with her Czech counterpart Vit Rakusan.

“We are calling on Russia again to stop these activities,” Faeser added.

Czech government officials said some of its state institutions had also been the target of cyberattacks blamed on APT28, again by exploiting a weakness in Microsoft Outlook in 2023.

Czech Interior Minister Rakusan said his country’s infrastructure had recently experienced “higher dozens” of such attacks.

“The Czech Republic is a target. In the long term, it has been perceived by the Russian Federation as an enemy state,” he told reporters.

EU, NATO condemnation

The German and Czech findings triggered strong condemnation from the European Union.

“The malicious cyber campaign shows Russia’s continuous pattern of irresponsible behaviour in cyberspace, by targeting democratic institutions, government entities and critical infrastructure providers across the European Union and beyond,” EU foreign affairs chief Josep Borrell said.

The EU would “make use of the full spectrum of measures to prevent, deter and respond to Russia’s malicious behaviour in cyberspace”, he added.

State institutions, agencies and entities in other member states including in Poland, Lithuania, Slovakia and Sweden had been targeted by APT28 in the past, the statement added.

The latest accusations come a day after NATO expressed “deep concern” over Russia’s “hybrid actions” including disinformation, sabotage and cyber interference.

The row also comes as millions of Europeans prepare to go to the polls for the European Parliament elections in June, and concerns about foreign meddling are running high.

Czech Foreign Minister Jan Lipavsky told AFP that “pointing a finger publicly at a specific attacker is an important tool to protect national interests”.

One of the most high-profile incidents so far blamed on Fancy Bear was a cyberattack in 2015 that paralysed the computer network of the German lower house of parliament, the Bundestag. It forced the entire institution offline for days while it was fixed.

In 2020, the EU imposed sanctions on individuals and entities linked to the APT28 group over the incident.

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