Germany is privatizing Sefe, the former Gazprom Germania division Berlin seized following Russia's 2022 invasion of Ukraine. The company will raise €1.5bn-€2bn through a capital increase — the first step toward diluting the government's 100% ownership stake, chief executive Egbert Laege told the FT.

EU Commission rules mandate Germany sell at least 75% of its stake by the end of 2028. The company includes gas storage facilities, pipelines, and a UK-based trading business formerly known as Gazprom Marketing & Trading. Laege said Middle East tensions have accelerated the privatization timeline by underscoring the importance of reliable energy suppliers for Europe.

Sefe intends to keep its two business “engines” — regulated infrastructure and trading operations — together despite speculation the assets might be split. The government is also considering whether to merge Sefe with nationalized gas importer Uniper, though Laege said the current process assumes a standalone approach.