Sanctions against Gazprom Germania expected to cost German consumers €5 billion

The sanction on Gazprom Germania, a former subsidiary of Russian energy giant Gazprom, is expected to cost German gas consumers €5 billion, German daily WELT AM SONNTAG reported. According to the report, the company which is under the external control of the Federal Network Agency of Germany, is now forced to purchase gas on the market under new contracts, which are substantially more expensive than the previous ones. This would eventually lead to higher pricing, which will fall on the shoulders of gas consumers.

Notably, Gazprom Germania and all of its assets were terminated by the Gazprom Group on March 31. Later, the company was placed under the trusteeship of the Federal Network Agency until September 30 by the German Ministry of Economic Affairs and Climate Protection. Earlier on May 11, it was confirmed that Gazprom's erstwhile subsidiary was included in the sanctions list of the Russian Federation. Meanwhile, Kremlin Spokesperson Dmitry Peskov stated that the companies that fell under the retaliatory sanctions of Moscow will no longer be able to partake in the process of gas supplies from Russia.