Sanctions against Russian gas hit Germany an extra $5.4 billion cost for replacement

According to a report by a German newspaper, 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.

Russia stopped supplying Gazprom Germania, which had been the German subsidiary of Gazprom in May 2002, after Berlin put the company under trustee management due to Russia’s invasion of Ukraine.

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.

The economy ministry estimates an extra 10 million cubic meters per day are required.

According to the report, the current cost would be about 3.5 billion euros a year and that further costs could arise from the filling of the Rehden natural gas storage facility which Economy Minister Robert Habeck ordered recently.

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. However, the supplies were not at risk.