Russia’s sanctions against Gazprom’s former German subsidiary may cost Germany around €5 billion ($5.36 billion) in additional expenses per year, the newspaper Welt am Sonntag reported on Sunday, citing sources within the industry.
On March 31, Russia’s state energy giant and major gas exporter Gazprom exited Gazprom Germania in response to Berlin’s move to put the company under a trusteeship amid the Ukraine-related sanctions on Russia. Moscow subsequently stopped supplying gas to the company, which had amounted to some 10 billion cubic meters per day, and on May 11, Gazprom Germania was put under sanctions by Russia.
The company is now forced to buy gas on the wholesale market under new contracts to continue servicing its supply contracts with German municipal utilities and regional suppliers. These contracts may be significantly more expensive than those with Russia’s Gazprom, with the difference amounting to some €2.5 billion ($2.68 billion) per year after resale to utility companies, the news outlet writes, citing Berlin authorities.