German Takeover of Gazprom Subsidiary Is 'Unprecedented' Use of FDI Regime, Law Firm Says
Germany’s recent takeover of Gazprom Germania GmbH, which was abandoned by Russia-based Gazprom in March, represents an “unprecedented” use of the country’s foreign direct investment screening regime, Cleary Gottlieb said in an April 12 alert. Germany seized control of the Russian company after Gazprom severed ties with the subsidiary last month, resulting in Germany’s Federal Network Agency acquiring full voting rights over Gazprom Germania GmbH, the law firm said. The government agency can “dismiss and appoint” members of the company’s management team, issue instructions and must authorize any disposal of company assets, the firm said.
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Cleary Gottlieb said Germany made the decision on “grounds of imminent danger to public order and security” and didn’t appear to coordinate with the European Commission. The firm said Germany is “actively monitoring” the country’s transaction market and is “willing to apply severe measures to protect the public order and security of Germany and of other European Union Member States.”