You are here: Home » International » News » Markets
Russian separatists release 10, including 2 US veterans held in Ukraine
Joe Biden acknowledges geopolitical shifts, says will not seek new Cold War
Business Standard

Germany nationalises country's largest gas importer for energy security

The German government agreed to nationalise the country's largest gas importer Uniper in an effort to ensure energy security against the backdrop of Russia's gas supply freeze and rocketing gas prices

Topics
Germany | oil and gas imports | energy sector

IANS  |  Frankfurt 



Photo: Bloomberg
Photo: Bloomberg

The German government agreed to nationalise the country's largest gas importer Uniper in an effort to ensure energy security against the backdrop of Russia's gas supply freeze and rocketing gas prices.

The government has agreed with Uniper and its previous majority owner, Finland's Fortum, on the far-reaching deal. Following the completion of a capital increase and the acquisition of Uniper shares from Fortum, the German government will own approximately 98.5 per cent of Uniper, Xinhua news agency reported, citing Fortum.

The German government is taking over "a total of 99 per cent of Uniper" as part of a further stabilisation package, the Ministry for Economic Affairs and Climate Action (BMWK) said on Wednesday. As a result, the government is creating "a clear ownership structure in order to secure Uniper as well as the energy supply for companies, municipal utilities and consumers".

The stabilization measures are still subject to approval by the European Commission. In addition, an extraordinary general meeting of Uniper is scheduled to adopt the deal before the end of 2022.

Uniper has a 50 per cent share of Russian gas in its portfolio and is responsible for about 40 per cent of gas supply in Germany, especially to over 100 municipal utilities and large companies, and therefore plays a central role in supplying with natural gas.

German Economy Minister Robert Habeck said that the takeover of Uniper was necessitated by Russia's decision to completely suspend gas deliveries via the Nord Stream 1 pipeline on September 1. Since then, Uniper has had to procure gas on the expensive spot market.

According to Fortum, Uniper has so far incurred losses of around 8.5 billion euros ($8.4 billion).

--IANS

int/shs

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.


We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, September 22 2022. 07:11 IST

RECOMMENDED FOR YOU

.