Germany Could Stop RWE Unit Sale

Posted by Joseph R. Fonseca
Sunday, June 15, 2014
Russian tycoon Mikhail Fridman

Germany's Economy Ministry is investigating whether to block the sale of RWE's oil and gas unit DEA to a group of investors led by Russian tycoon Mikhail Fridman, a spokeswoman said.

The German government has never previously made use of a clause in its foreign trade law, under which it could stop the deal announced earlier this year if there were concrete signs it threatened "public safety and order".

"An investigation has been started. It is an open-ended investigation (to find out) whether there are conditions for prohibiting the deal under the foreign trade accord," a spokeswoman for the Economy Ministry told Reuters.

Spiegel magazine on Sunday reported the ministry had started to look into the deal following fresh information but did not give further details. The ministry spokeswoman declined to comment on the information.

Economy Minister Sigmar Gabriel told RWE chief Peter Terium about the investigation on Friday, Spiegel said.

"We have been informed about the investigation and are awaiting its result," a RWE spokeswoman told Reuters, adding the company still expected to finalise the deal this year.

The 5.1 billion euro ($6.9 billion) deal came under criticism from senior German politicians in March, as relations between Russia and the West deteriorated over Ukraine.

STRATEGIC RESERVES

The sale will hand Fridman, Russia's second-richest man, and other co-investors stakes in about 190 oil and gas licenses or concessions inEurope, the Middle East and North Africa.

Norbert Roettgen, head of the Bundestag's foreign committee, from Chancellor Angela Merkel's conservatives said when the deal was announced it did not "fit into the landscape now".

Germany currently receives more than a third of its gas and oil fromRussia.

More than 6,000 German companies are active in the country and business associations and trade bodies have warned an escalation in tensions over Ukraine would result in catastrophic losses for firms.

RWE, like other German utilities, is struggling to adjust to a power sector shake-up as Germany moves away from nuclear energy. The shake-up has more than halved the debt-burdened firm's market value in four years.

Under pressure from a deep and prolonged industry crisis, caused by a surge in rivals' renewable capacity as well as weak energy demand in its core market Europe, RWE has been looking for ways to reduce its debt pile of more than 30 billion euros, including cutting jobs and shedding assets.

(Reporting by Annika Breidthardt, Tom Kaeckenhoff and Matthias Sobolewski; Editing by Sophie Hares)

($1 = 0.7345 Euros)

Maritime Reporter October 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

Oil Deal Between Iraqi Kurdistan & Baghdad Welcomed

The United States welcomes an agreement between Iraq's central government in Baghdad and its northern Kurdistan region over the management of oil exports, U.

Canadian Pipeline Expansion Continues

Kinder Morgan Energy Partners said on Friday that crews have resumed survey work related to its Trans Mountain pipeline expansion project in the Vancouver suburb of Burnaby,

Orlando Ashford is President, Holland America Line

Holland America Line announced today that effective Dec. 1 Orlando Ashford will join the company as president to lead the award-winning cruise line's brand and business,

Energy

Gazprom Transgaz Ufa Organizes Arts Festival

Over 200 healthy children and children with disabilities from Bashkortostan as well as the Volga Region participated in the Breaking the Barriers second interregional children’s arts festival,

Time-out for Kwanza Drilling

Statoil has decided to cancel the Stena Carron rig contract after fulfilling the work commitments in the Statoil-operated blocks 38 and 39 in the Kwanza basin offshore Angola.

President Pryor Retires from ExxonMobil Chemicals

Stephen D. Pryor, president, ExxonMobil Chemical Company and vice president of Exxon Mobil Corporation, has elected to retire on January 1, 2015, after more than 44 years of service.

News

7 Rescued from Sinking Freighter Near Haiti

Seven crewmembers were rescued after their 100-foot coastal freighter began taking on water and sank approximately 45 miles north off of Cap Haitien, Haiti, Friday.

Gazprom Transgaz Ufa Organizes Arts Festival

Over 200 healthy children and children with disabilities from Bashkortostan as well as the Volga Region participated in the Breaking the Barriers second interregional children’s arts festival,

Time-out for Kwanza Drilling

Statoil has decided to cancel the Stena Carron rig contract after fulfilling the work commitments in the Statoil-operated blocks 38 and 39 in the Kwanza basin offshore Angola.

People in the News

7 Rescued from Sinking Freighter Near Haiti

Seven crewmembers were rescued after their 100-foot coastal freighter began taking on water and sank approximately 45 miles north off of Cap Haitien, Haiti, Friday.

Gazprom Transgaz Ufa Organizes Arts Festival

Over 200 healthy children and children with disabilities from Bashkortostan as well as the Volga Region participated in the Breaking the Barriers second interregional children’s arts festival,

President Pryor Retires from ExxonMobil Chemicals

Stephen D. Pryor, president, ExxonMobil Chemical Company and vice president of Exxon Mobil Corporation, has elected to retire on January 1, 2015, after more than 44 years of service.

 
 
Naval Architecture Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2239 sec (4 req/sec)