You are here: Home » International » News » Economy
India not sitting UNSC permanent member 'not good' for the global body: EAM
Fed delivers third-straight big hike, sees more increases ahead
Business Standard

Germany takes over Uniper for $8 billion amid Europe's energy crisis

Germany also took control of a Russian-owned oil refinery, which supplies 90% of capital's fuel, putting a Rosneft unit under the trusteeship of industry regulator and taking over Schwedt plant

Topics
Germany | Russia Ukraine Conflict | Europe

Kirsti Knolle & Anne Kauranen | Reuters  |  Berlin/Helsinki 



Uniper germany
Uniper germany

has agreed to nationalise Uniper, raising the bill to rescue the gas importer to 29 billion euros ($28.7 billion) amid an escalating energy crisis that shows just how much Europe's top has relied on Russian fuel. The deal brings the total cash pumped into Germany's three biggest importers of Russian gas, also including EnBW's VNG division and former Gazprom unit Sefe, to at least $39.64 billion.

Nationalising Germany's largest importer of Russian gas is the second move in a week by the government to take control of an energy business and is part of a wider European response to the winter crisis, including France taking over EDF.

last week also took control of a Russian-owned oil refinery, which supplies 90 per cent of the capital's fuel, putting a Rosneft unit under the trusteeship of the industry regulator and taking over the Schwedt plant.

chart

Uniper, whose shares fell as much as 39 per cent to 2.55 euros, burned through its cash buying alternative supplies after Moscow cut gas flows to Germany, triggering an initial $14.86 billion state rescue package in July.

But as with other European energy companies that have failed to cope with soaring gas prices, it soon became clear that the bailout was not enough to cover Uniper's deepening losses and will now inject yet more cash, partly by buying out Finnish utility Fortum's 56 per cent holding for 500 million euros, or 1.70 euros per share.

After completing a capital increase and the Fortum share buy, which excludes the Finnish firm's subscription rights, Germany will hold 99 per cent of Uniper, the country’s ministry said.

“The state will - that's what we're showing now - do everything possible to always keep the companies stable on the market,” German minister Robert Habeck told reporters.

Berlin has said it would review an application earlier this month by VNG which asked the government for aid to stay afloat.

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: Wed, September 21 2022. 23:32 IST

RECOMMENDED FOR YOU

.