German lawmakers approve possible expropriation of energy companies

BERLIN, May 12 (Reuters) - Germany's lower house of parliament on Thursday approved a new version of a bill to secure energy supply, including possible expropriation of critical energy infrastructure and assets in the event of an emergency.

As Europe's biggest economy looks to guard against the risk of Russia turning off supplies, the new amendments, expected to come into effect in June, would enable the government to put energy companies under trusteeship if they can no longer fulfil their tasks and if the security of supply is at risk.

The renewed law - which still needs to pass the upper house of parliament - could be applied for the first time if no solution is found on the ownership of the Schwedt oil refinery, which is majority-owned by Russian state-owned Rosneft.

The law authorizes the government to take control over companies' energy production, transport and distribution of energy if supply is at risk.

Germany's energy network regulator should be notified about any planned decommissioning of gas storage facilities in the future, according to the new law.

Last month, the German government acted on a different legal basis to sustain operations at Gazprom Germania, the trading, storage and transmission business abandoned by Russia's Gazprom (GAZP.MM), opens new tab.

The company was taken into the regulator's control on April 4 as the Economy Ministry sought to stave off a possible acquisition by JSC Palmary and Gazprom Export Business Services LLC, both of Russia, the Economy Ministry said at the time. read more