Germany green lights sale of RWE Dea to Russian fund

The German government said Friday it has given the go-ahead to power giant RWE's sale of its Dea oil and gas unit to a Russian-controlled investment fund. ‘We've examined the case intensively and have raised no objection,’ a spokeswoman for the economy ministry told a regular government news briefing. ‘We don't expect it will affect the security of supply in Germany,’ she added. The ministry launched a probe in mid-June into RWE's planned 5.1-billion-euro ($6.8-billion) sale of Dea -- which specialises in oil and gas exploration and production -- to a Luxembourg-based fund called LetterOne, which is controlled by Russia's Alfa Group. Alfa Group belongs to billionaire entrepreneur Mikhail Fridman. The transaction is a key part of RWE's strategy for reducing debt and freeing up investment for the transition away from fossil fuels towards renewable energy currently underway in Europe. The deal's announcement came against the backdrop of the crisis in east Ukraine and Europe's threat of tougher sanctions against Russia. It drew strong criticism from German lawmakers, with the opposition Greens calling on the government to stop the deal, according to AFP.