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Germany Prepares to Lend Billions to Rescue Ex-Gazprom Unit

  • Loan from KfW could come as soon as this week, people say
  • Gazprom Germania is under control of German energy regulator
Gazprom Germania Gmbh at the building that houses the company's corporate headquarters in Berlin.

Gazprom Germania Gmbh at the building that houses the company's corporate headquarters in Berlin.

Photographer: Liesa Johannssen-Koppitz/Bloomberg

The German government is preparing to lend billions to rescue a former arm of Gazprom PJSC now under the control of the country’s energy regulator, according to people familiar with the matter.

A bailout for Gazprom Germania GmbH could come as early as this week, with state-owned bank KfW Group expected to issue a loan in the range of 5 billion euros ($5.2 billion) to 10 billion euros, said the people, who asked not to be identified because the information is private. Talks are still ongoing and plans could change, the people said.