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Germany Loses €5 Billion a Year Due to Russian Gas Sanctions

Russian sanctions on Gazprom Germania and its subsidiaries could cost German taxpayers and gas users an extra €5 billion or $5.4 billion a year to replace gas; the Welt am Sonntag weekly newspaper said.


In May, Russia decided to stop supplying Gazprom’s Germania subsidiary after Berlin placed Gazprom under trustee management due to Russia’s invasion of Ukraine.


Since then, the Bundesnetzagentur federal energy regulator, which is the trustee, has had to buy alternative gas on the market to fulfil supply contracts with German municipal utilities and regional suppliers.


A spokesman for the economy ministry said the ministry estimated that an additional 10 million cubic meters per day would be needed.


According to Welt am Sonntag, the current annual cost is around €3.5 billion. The lightning gas storage facility’s refilling, ordered by Economic Minister Robert Habeck on Wednesday, could incur more costs.


Media reports said the extra cost would be passed on to energy suppliers and end customers in the form of a gasoline tax from October.

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