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Gazprom eyes up Luxembourg
Economics

Gazprom eyes up Luxembourg

14.03.2012 From our online archive
The Russian energy giant Gazprom is rumoured to be eying up Luxembourg as a new base, following a restructuring of European operations.

The Russian energy giant Gazprom is rumoured to be eying up Luxembourg as a new base, following a restructuring of European operations.

According to the German Business Week, the gas provider is allegedly planning to move its European headquarters from Berlin where they are held under the German subsidiary Gazprom Germanian.

While Gazprom has declined to comment on the rumours, Business Week speculated that such a move could threaten some 520 jobs in Berlin.

The rumours emerged from sources within the industry and, if proved correct, could have a severe effect on German tax revenues- Gazprom Germania is one of the highest tax payers in the capital.

It was also considered an important foreign branch within the Russian-owned Gazprom group.

It appears that the strategy to withdraw from Germany is not new. Business Week reported that the former Russian Ambassador to Berlin had previously tried to prevent a “total gutting” of Gazprom Germania.

Russia provides about a quarter of the gas consumed in Europe. However, it looks set to expand its markets to the east to be less dependent on Europe and expects to sign an agreement with China later in the year.