Germany nationalizes energy giant Uniper as Russia squeezes gas supplies


By: - Climate DepotSeptember 21, 2022 9:02 AM

 

https://www.cnbc.com/2022/09/21/german-government-agrees-nationalization-deal-for-energy-giant-uniper.html

Having already agreed in July to bail out the major gas importer with a 15 billion euro ($14.95 billion) rescue deal, the state will now buy out the 56% stake of Finland’s Fortum for a further 500 million euros.

The German government on Wednesday agreed to the nationalization of utility Uniper as it strives to keep the industry afloat in the wake of a worldwide energy crisis.

Having already accepted in July to bail out the major gas importer with a 15 billion euro ($14.95 billion) rescue deal, the state will now buy out the 56% stake of Finland’s Fortum for a 0.5 billion euros. The German state is set to own around 98.5% of Uniper.

“Since the stabilisation package for Uniper was agreed in July, Uniper’s situation has further deteriorated rapidly and significantly; as such, new measures to resolve the situation have been agreed,” Fortum announced in a statement on Wednesday morning.

Uniper is Germany’s largest importer of gas, and has been squeezed by vastly reduced gas flows from Russia, which have sent prices soaring.

Russian state-owned energy giant Gazprom earlier this month indefinitely halted gas flows to Europe via the Nord Stream 1 pipeline, a move Uniper CEO Klaus-Dieter Maubach told CNBC would exacerbate the company’s struggles.