July 1, 2022

Taylor Daily Press

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The Netherlands plays a key financial role for Russia’s Gazprom

The Netherlands performs an important function for the Russian gas giant Gazprom. Since the energy company is not covered by sanctions, it is currently a major remaining financier of the Russian government.

This is what SOMO wrote in a letter published today Transfer† According to the research organization, Dutch service providers and the government should ensure that this flow of money dries up.

Sixteen Dutch girls

The investigation into the presence of Gazprom in the Netherlands shows that the Russian gas company is present here with no less than sixteen companies.

At the end of 2020, the capital of affiliates, largely email companies, was $26.5 billion (€24 billion). That year, the Dutch subsidiaries were to transfer $5.8 billion in dividends to the Russian parent company.

Sumo points out that the data is also based on 2020, which is the most recent year for which data is available. according to Rising oil and gas prices Since that year, it is likely that the income and payments to the Russian mother have risen sharply in recent years.

The Kremlin financier

Partly because the Russian state is the controlling largest shareholder in the company, an important part of this income ends up in the Kremlin treasury.

Gazprom It is not subject to the sanctions imposed by the European Union in response to the Russian invasion of Ukraine. According to SOMO, Gazprom has become a more important financial lifeline for the Kremlin as a result.

Dividends and taxes

The research organization states that the $5.8 billion payments to Dutch subsidiaries to the Russian parent company equate to 1.9 percent of total Russian state expenditures.

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However, these Dutch payments do not reach the Russian government in full. Sumo herself wrote that the gas company distributes only a small part of its profits to its shareholders, of which the Russian state is the most important. According to the research organization, Gazprom is one of the largest taxpayers in Russia.

Freezing of Gazprom’s assets

SOMO calls on Dutch stakeholders to stop providing services to Gazprom. For example, according to the organization, the Dutch government must ensure that the ownership of Gazprom in the Netherlands cannot be transferred temporarily.

With our tax system, Putin can keep filling the war chest. “The flow of foreign exchange into Russia should be restricted immediately, for example by freezing the holding of Gazprom in the Netherlands,” says researcher Rodrigo Fernandez of SOMO.

“This can be done by temporarily banning the sale of Dutch corporate assets with a Russian owner with immediate effect.”

In a broader sense, the research organization believes that the Dutch government should reconsider the policy of email companies aimed at channeling wealth and avoiding taxes.

station service

SOMO believes that Gazprom’s legal and business service providers, such as law firm Houthoff, trust firm Intertrust and accounting firm PricewaterhouseCoopers (PwC) should discontinue or discontinue their services.

Hothof And Intertrust has already announced a divestment from its Russian clients, PwC hasn’t done that yet† According to the report, the accounting firm provides its services to all 16 Dutch Gazprom companies investigated.

PricewaterhouseCoopers and the Department of Economic Affairs were unable to respond to Sumo’s recommendations this afternoon.

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