Germany is privatizing the nationalized company SEFE, which was formerly owned by Gazprom

A former subsidiary of the Russian gas monopoly, which controls 10% of Germany’s gas pipeline network, is beginning the process of returning to private ownership.

This was reported by the Financial Times. To this end, SEFE plans to raise between 1.5 and 2 billion euros in external investment through a capital increase.

The funds raised will be used to expand the infrastructure asset management business. CEO Egbert Lege noted that the war in Iran has accelerated privatization plans, as reduced supplies from the Middle East have highlighted the critical need for reliable energy sources. Currently, the Russian government has lost control over this strategic asset, which ensures Europe’s energy security. 

The company’s further development involves full integration into the European energy market without Russian influence. The importance of this step has grown amid global destabilization of energy supplies due to military conflicts. Attracting private capital is expected to complete the transformation of the enterprise from a tool of Russian political pressure into an independent operator. 

The German Ministry of Economy has ordered the state-owned company SEFE, a former subsidiary of Gazprom, to terminate its contract for the supply of Russian LNG.

Norway’s Equinor has signed a ten-year gas supply contract with Germany, with an option to extend it for another five years—through 2038. The buyer of the gas will be a Gazprom subsidiary nationalized by Germany, now known as SEFE (Securing Energy for Europe GmbH).