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U.K. Faces £4 Billion Bill If Government Has to Bail Out Gazprom

  • Nationalizing Gazprom Energy would cost about 4 billion pounds
  • Hedges held by parent firm wouldn’t be passed on to government

U.K. taxpayers could face billions of pounds in costs if the government ends up nationalizing a unit of Gazprom PJSC that supplies about a fifth of the country’s commercial gas.

Temporarily running Gazprom Marketing & Trading Retail Ltd. -- an energy provider to the National Health Service -- would cost about 4 billion pounds ($5.3 billion), according to people familiar with the matter, who asked not to be named because the information is private. That’s because the company’s hedges wouldn’t be passed on, forcing the government to buy gas and electricity for customers at current high prices, the people said.