Russian-owned energy firm supplying Scots seized by German Government

Gazprom Marketing and Trading Ltd supplies gas to about 20% of the UK's businesses.

Russian-owned energy firm supplying Scots homes Gazprom seized by German Government iStock

A Russian State-owned energy firm that supplies thousands of Scottish homes has been seized by the German Government after fears its supply chain may collapse.

Gazprom Marketing and Trading Ltd also supplies gas to about 20% of the UK’s businesses.

In March, fears the company would enter administration sparked the UK Government to look at potentially stepping in to run Gazprom UK.

Aberdeen Heat and Power, a not-for-profit energy supplier owned by the city council that serves 4000 homes, terminated its contract with Gazprom.

On Monday, the German Ministry of Economy announced a temporary takeover of Gazprom Germania, the German arm of the Russian gas giant, which in turn owns the UK business.

The move, designed to secure gas supplies for Europe, means the German Government ultimately controls the business and all its subsidiaries including Gazprom Marketing and Trading Ltd.

Gazprom announced that the German business and all its subsidiaries must stop using company trademarks, including in their names and branding, to avoid further identification of their activities with the Russian-owned Gazprom Group.

The Gazprom Group also recalled its representatives from the management bodies of Gazprom Germania and the UK business.

In March, a number of Russian directors of Gazprom Marketing and Trading Ltd resigned their posts.

Ofgem said it would not comment on speculation but that there is no concern about security of supply of energy and the UK does not rely on Russian gas.

“The safe and reliable supply of energy to businesses and domestic users is not in doubt,” a spokesperson said.

“We continue to work with Government to assess the impacts of any sanctions or changes to the market and ensure consumers are protected.”

The UK Government declined to comment.

It follows turbulence in the global energy market with soaring wholesale prices hitting record highs as Russia’s invasion of Ukraine sparked fears over disruptions to gas supplies.

Last month, Scottish Power announced it is pulling out of the UK’s industrial and commercial (I&C) energy market.