Azernews.Az

BERLIN – Russian gas giant Gazprom is seeking to buy shares of Germany’s biggest energy firm, EON, and its subsidiary, the company’s CEO Alexei Miller told German newspaper Sueddeutsche Zeitung.

If Gazprom purchases the stock in EON and EON Ruhrgas, the transaction may grant it the management of the gas distribution networks of Baku and the whole Absheron Peninsula, which encompasses the Azerbaijani capital’s surrounding regions. The point is that Azerbaijan’s state-controlled gas supplier Azerigas has recently selected EON as a contractor to develop the project on overhauling the two gas networks. A joint venture is expected to be established with the German company. Head of Azerigas, Akbar Hajiyev, said an agreement to be signed with EON was in the making.

Though Gazprom has not yet made a formal proposal on the purchase of shares, German politicians and analysts have begun commenting on the Russian gas monopoly’s plans. Some pundits said the transaction would benefit the German economy, while others offered to scrutinize the issue in terms of domestic laws on monopolies and competition. Moreover, EON has not yet responded to Gazprom’s plans.

The gas distribution network of Baku will be overhauled to meet European standards under a project worth up to 900 million euros. The project is to be developed by the end of 2011. Its implementation is due to begin in 2012 and last about ten years.