Uniper received billions of dollars in financial aid from the German government as a result of soaring gas and electricity prices following Russia’s war in Ukraine.
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On Wednesday, the German government agreed to nationalize utility Uniper as it strives to keep the industry afloat in the wake of the global energy crisis.
The country, which in July already accepted a €15 billion ($14.95 billion) bailout deal to bail out a major gas importer, will buy a 56% stake in Finland’s Fortum for €500 million. The German government will own approximately 98.5% of Uniper.
“Since the Uniper Stabilization Package was agreed in July, the situation at Uniper has deteriorated even more rapidly and significantly, so new measures have been agreed to resolve the situation,” Fortum said Wednesday morning. announced in a statement.
Uniper, Germany’s largest gas importer, has been squeezed by a sharp drop in gas flows from Russia, driving prices up sharply.
Russian state energy giant Gazprom indefinitely suspended the flow of gas to Europe via the Nord Stream 1 pipeline earlier this month, Uniper CEO Klaus-Dieter Maubach told CNBC.
Fortum announced Wednesday that it will deconsolidate Uniper as of the third quarter of 2022, that Fortum’s €4 billion loan to Uniper will be repaid and the Finnish company will be released from its parent company’s guarantee of €4 billion. .
Fortum CEO Markus Rauramo said:
“Since Russia attacked Ukraine, the role of gas in Europe has fundamentally changed, and so has the outlook for gas-intensive portfolios. It’s not possible.”
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