German energy firm RWE takes Gazprom to court over supply halts

AFP
AFP - [email protected] • 6 Dec, 2022 Updated Tue 6 Dec 2022 12:50 CEST
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The logo of Russia's energy giant Gazprom is pictured at one of its petrol stations in Sofia in 2022. (Photo by Nikolay DOYCHINOV / AFP)

German's RWE said Tuesday it is taking legal action against Russia's Gazprom over halted gas supplies, the latest German company to do so since Moscow invaded Ukraine.

Following the invasion, Gazprom steadily dwindled pipeline supplies to Germany in apparent retaliation for Western sanctions on Russia, sending energy prices soaring.

Last week, German energy giant Uniper said it was seeking damages from Gazprom at an international tribunal, as the Russian company's failure to deliver gas had cost them billions of euros.

READ ALSO: Germany's Uniper takes Gazprom to court over halted gas supplies

An RWE spokeswoman confirmed to AFP the company had also launched action, but declined to give further details.

Gazprom's failure to deliver promised supplies has meant that German companies, long heavily reliant on Russian energy, had to buy gas on world markets at far higher prices.

Financial daily Handelsblatt reported that the costs incurred by RWE were likely lower, at around €1 billion, than those faced by Uniper.

Uniper had far larger contracts, and has put its losses from the supply halts at €11.6 billion. Gazprom has rejected Uniper's claims.

The company, Germany's biggest gas importer, has agreed a deal to be nationalised after Russia's drastic reduction in supplies pushed it to the brink of bankruptcy.

READ ALSO: How Germany became ensnared by Russian gas

It reported a €40 billion net loss for the first nine months of the
year, one of the biggest losses in German corporate history.

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AFP 2022/12/06 12:50

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