UK govt fails to block deal between German, Russian energy firms

London

THE German utility RWE and a Russian-controlled investment company said that they expected to complete a deal for the oil and gas subsidiary RWE Dea later on Monday, despite objections from the British government.

L1 Energy, based in London and owned by Russian billionaire Mikhail Fridman and partners, agreed last year to buy RWE Dea for five billion euros (S$7.6 billion). Among RWE Dea's prime holdings are a large North Sea natural gas field called Breagh and other British assets.

The British government has declined to bless the sale out of concern that Mr Fridman or his company might become the target of expanded sanctions on the Russian energy industry stemming from the Ukraine conflict. Any additional sanctions might force the shutdown of those fields, creating safety and environmental risks, according to the go…