German state-owned company resumes LNG trade with Russia – Bloomberg

The German government has faced criticism because a state-owned company has decided to resume trade in liquefied natural gas with Russia.

This was reported by Bloomberg.

Securing Energy for Europe GmbH, a former unit of Russian gas giant Gazprom, plans to ship LNG produced at the Yamal plant in Siberia early next month. Germany nationalized the company, known as SEFE, last year at the height of Europe's energy crisis.

Although the cargo is headed to India, there is some concern about a German state-owned company making deals with Russia.

Critics say it contradicts Germany's pledge to avoid using Russian LNG after Russia's full-scale war against Ukraine.

"This contradicts pretty much everything the German government has said on the subject in the past. The economic entanglements with Russia are apparently not as easy to resolve as politicians would have us believe," said Christian Leye, a member of parliament from the opposition Left Party group.

Germany’s economy ministry acknowledged Bloomberg’s request for comment, saying it is looking into the matter.

The shipment underscores the complexity and global nature of LNG trade, which the European Union has come to rely on increasingly after Russia sharply cut pipeline gas supplies to the region last year.

Some EU countries have actually increased their LNG imports from Russia as the region modernizes its energy infrastructure.

Germany has opposed, though not banned, LNG purchases from Russia. In January, Berlin informed companies "that it will take appropriate measures to exclude purchases of Russian LNG if possible".

Author – Anastasiya Glotova, 22/09/2023