Germany faces $5.4 bln a year hit from Russian gas sanctions: Welt am Sonntag weekly

Russia’s sanctions against Gazprom Germania and its subsidiaries could cost German taxpayers and gas users an extra 5 billion euros ($5.4 billion) a year to pay for replacement gas, the Welt am Sonntag weekly reported, citing industry representatives.

In May, Russia decided to stop supplying Gazprom Germania, which had been the German subsidiary of Gazprom, after Berlin put the company under trustee management due to Russia’s invasion of Ukraine.

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Since then, the Bundesnetzagentur energy regulator, acting as trustee, has had to buy replacement gas on the market to fulfil supply contracts with German municipal utilities and regional suppliers.

Welt am Sonntag reported that Economy Minister Robert Habeck estimates an extra 10 million cubic meters per day are required, which would currently cost about 3.5 billion euros a year.

Further costs arise from the filling of the Rehden natural gas storage facility which Habeck ordered on Wednesday, it said.

The paper also said the additional costs would be passed on to energy suppliers and end customers in the form of a gas levy from October.

The economy ministry declined to comment on the scale of costs incurred, Welt am Sonntag said, and no one at the ministry replied immediately to an emailed request to comment.

Read more: Germany prepares crisis plan for abrupt end to Russian gas: Reuters