Finance
Germany to Begin Privatization of Seized Gazprom Division, Ft Reports
Published by Global Banking & Finance Review®
Posted on April 20, 2026
2 min readLast updated: April 20, 2026
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Germany will launch the privatization of SEFE—formerly Gazprom’s German arm—and plans a €1.5–2 billion capital increase to support infrastructure expansion.
Germany to begin privatization of seized Gazprom division, FT reports
Privatization Plans and Strategic Developments
Background of SEFE and Nationalization
April 20 (Reuters) - Germany will begin privatization of the Gazprom unit seized by Berlin post Russia's 2022 invasion of Ukraine, its chief executive told the Financial Times in an interview published Monday.
The division, called Securing Energy for Europe (SEFE), also intends to raise 1.5 billion euros- 2 billion euros($1.76 billion- $2.35 billion) through a capital increase to finance the expansion of its infrastructure assets business, the FT said.
SEFE's Role in Germany's Energy Infrastructure
SEFE, previously Gazprom Germania, was nationalized by Berlin in 2022 after the group's former Russian parent ditched the division, which is a vital part of Germany's gas supply. The firm operates 4,200 kilometres (2,610 miles), or 10%, of Germany's gas network system.
Regulatory Requirements and Future Ownership
EU Rules on State Ownership
European Union rules require the German state to cut its stake to no more than 25% plus one share by 2028.
Momentum for Privatization
Impact of Global Events
CEO Egbert Laege told the FT that the Iran war had lent momentum to privatization plans, with constrained Middle East gas flows highlighting the importance of reliable suppliers.
Potential Privatization Methods
Germany plans to dilute its SEFE holding after the initial capital increase, potentially via another sell‑off, an initial public offering or other options, Laege added.
"Given the short time in which we’re operating, maybe the IPO is a bit difficult for us but in the end this is up to the markets and it’s a decision for the government," he said.
Additional Information
($1 = 0.8506 euros)
(Reporting by Ananya Palyekar in Bengaluru; Editing by Ronojoy Mazumdar and Mrigank Dhaniwala)
Key Takeaways
- •SEFE, seized from Gazprom after Russia’s 2022 invasion of Ukraine, is being privatized by Germany to strengthen energy independence.
- •The company intends to raise €1.5–2 billion via capital increase to fund expansion of infrastructure assets.
- •SEFE has already repaid significant subsidies (~€725 million) and is expected to complete privatization by end‑2028.
Frequently Asked Questions about Germany to begin privatization of seized Gazprom division, FT reports
1What is Germany privatizing according to the FT report?
Germany is beginning the privatization process of the Gazprom division seized after Russia's 2022 invasion of Ukraine, now named Sefe.
2What is Sefe?
Sefe is the former Gazprom division seized by Germany, responsible for running energy infrastructure assets.
3How much capital does Sefe aim to raise?
Sefe plans to raise between 1.5 to 2 billion Euros through a capital increase.
4Why did Germany seize the Gazprom division?
Germany seized the Gazprom unit in response to Russia's 2022 assault on Ukraine.
5What will the raised funds be used for?
The funds are intended to help Sefe expand its business operations.
