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German cabinet backs possible nationalization of energy firms

Germany's cabinet on Monday approved a legal amendment that would enable the government to seize ownership of energy companies as a measure of last resort to secure supplies in the event of an emergency. Germany, which is heavily dependent on Russian energy, last month triggered an emergency plan to manage gas supplies in view of worsening relations with the Kremlin over its invasion of Ukraine and retaliatory western sanctions. That was the first step in a three-phase plan that could result in energy rationing, with priority given to households and critical infrastructure such as hospitals. The amendment would enable the government, which is racing to reduce Germany's dependence on Russian imports, to place energy companies under trust administration should energy security be threatened. It already adopted that strategy with Gazprom Germania a trading, storage and transmission business abandoned by Russia's Gazprom. Berlin hopes parliament will pass the amendment in May, a government source said. (DE.EOAN) (DE.RWE)

german cabinet backs possible nationalization energy firms 04 252022