OGZPY - Germany takes over former Gazprom unit as it breaks away from Russian reliance

Germany said Monday it nationalized the German subsidiary of Russia's Gazprom ( OTCPK:OGZPY ), placing it under 100% federal ownership to help protect supply as it prepares for its winter without Russian fossil fuels.

The government cited the debt load of the unit and said it needed to head off the danger of bankruptcy and ensure continued operation of the "key company for Germany's energy supply."

The European Commission approved the plan over the weekend, saying the nationalization of the former Gazprom Germania and €13.8B ($14.2B) plan to shore up the business was "necessary, appropriate and proportionate to remedy a serious disturbance" in a member state economy.

The news comes just two months after Germany took ownership of three refineries owned by Russian oil company Rosneft.

Poland’s government, meanwhile, cited energy security in taking temporary control of Gazprom's ( OTCPK:OGZPY ) share in the Yamal gas pipeline system in Polish territory.

In September, the German government said it would nationalize major gas importer Uniper, which had amassed more than €8B in gas-related losses .

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