Gas deal

ukraine-gas-and-russia-economy

Russia is buying German company RWE

Thus, Moscow will block the resale channel of its fuel to Ukraine through Europe.

The Ministry of Economic Affairs of Germany gave permission to the Russian capital to buy large oil and gas company RWE, which through Slovakia had to conduct the reverse supply of Russian gas to Ukraine. This was reported by Reuters, citing informed sources close to the deal.

The German company intends to sell its assets to investors from a group of Russian billionaire Mikhail Fridman. Thus, German businessmen basically ignored the anti-Russian sectoral sanctions and intense political situation due to the situation in Ukraine.

Back in March of this year, a transaction for the sale of oil and gas subsidiary of RWE was approved – the DEA company, which was acquired by an investment company with Russian capital Letter One for 5.1 billion euros. But two months later, in June, the Ministry of Economic Affairs of Germany started to revise the transaction due to the worsening of the situation in Ukraine.

However, according to Reuters, even after the revision of the transaction, the German government would still approve the purchase of the company by the Russian side.

At the moment, representatives of the German government, RWE and Russian consortium Letter One declined to comment on the deal.

As the result of the deal with RWE, Russian consortium led by Friedman will receive about 190 licenses or stakes in concessions in oil and gas sector in Europe, North Africa and the Middle East.

Let’s recall that in April it was reported that the German RWE is resuming reverse gas supplies to Ukraine via Poland. Plus, in the beginning of August, the concern RWE has submitted a request to supply to Ukraine through Slovakia additional 8.8 million cubic meters / day of gas, making it possible for Ukraine to get from RWE about 2 billion cubic meters of gas before the end of this year. However, in light of the sale of RWE assets to the Russian investors, Ukraine’s reversal channel of gas supply may close.