FRANKFURT — Gas export monopoly Gazprom aims to double its stake in eastern German gas group VNG in its bid for greater clout in Germany, Gazprom's country head told a magazine.
"We have been working for almost 20 years to get an appropriate position in VNG. I hope we'll now succeed," Gazprom Germania head Hans-Joachim Gornig told German magazine WirtschaftsWoche in an interview.
The company currently holds a 5.3 percent stake in VNG, according to VNG's web site.
Gazprom wants to take over GdF Suez's 5.3 percent stake in VNG in an exchange according GdF a participation in the planned Nord Stream pipeline under the Baltic Sea.
"But it is not Gazprom's decision alone. The other shareholders in the North Stream consortium also have to agree," Gornig said in the magazine released in advance of publication on Monday.
Gazprom is not the only company aiming to gain influence in VNG, however, with southwestern German power utility EnBW also seeking a leading role after it bought a 48 percent stake in VNG earlier this year.
Media reports had said there was opposition to EnBW's leadership bid from municipal and private shareholders, which besides GdF Suez, also includes Wintershall.
A spokesperson for Wintershall, owner of a stake just under 16 percent in VNG, had said in September that his company was interested in boosting its stake in VNG if shares became available, but declined to give details.
Gornig said Gazprom's sponsorship of German soccer club Schalke 04 was improving the company's image in the country and the sponsorship deal would be extended before the current contract runs out in 2012.
Gazprom wants to get closer to retail customers, he said.
"We have to think about the future. It's possible we will soon be much more closely involved in retail business," he said.
The company was also open to further acquisitions in Germany, Gornig said.
"We're keeping our eye on the German market. If interesting opportunities crop up, we'll examine them closely," he said.
However, there were no plans to snap up regional suppliers.
"If suppliers sell their networks, then they are less valuable to investors like us," he said, adding that Europe's energy market was on the verge of a "liberalization craze."
Gazprom had invested about 2 billion euros ($2.7 billion) in infrastructure at German gas sales unit Wingas over the last 20 years, he said.
"That investment is now not worth as much as it was a couple of years ago," he said.
"I also don't think that spinning off networks will increase reliability of supply; there are already pure financial investors in talks as potential buyers," he said.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.