German government agrees on bailout for energy supplier

By AP News

Share:

BERLIN (AP) — The German government will take a roughly 30% stake in energy supplier Uniper as part of a rescue package following surging prices for natural gas and reduced Russian deliveries, the company said Friday.

File-File photo shows "Welcome to Uniper" which is written at the entrance to the corporate headquarters of energy supplier Uniper in Duessledorf, Germany, July 8, 2022. The struggling gas importer has applied to the German government for stabilization measures after Russian gas supplies were cut. (Roberto Pfeil/dpa via AP,file)

BERLIN (AP) — The German government will take a roughly 30% stake in energy supplier Uniper as part of a rescue package following surging prices for natural gas and reduced Russian deliveries, the company said Friday.

Uniper, which has been Germany's biggest importer of Russian gas, asked for a bailout two weeks ago. German officials quickly pledged that they would help, but thrashing out the details took time.

Uniper had previously downgraded its financial outlook for this year, pointing to a sharp reduction in gas deliveries by Russia’s Gazprom in recent weeks that has forced it to buy substitute supplies at significantly higher prices.

Gazprom cut the flow of gas through the Nord Stream 1 pipeline from Russia to Germany by 60% in mid-June, pointing to technical issues that German officials dispute.

Gas deliveries through the pipeline resumed as scheduled Thursday after a scheduled 10-day shutdown for maintenance but still at only 40% capacity.

Uniper is majority-owned by Finland-based Fortum, in which the Finnish government holds a majority stake.

___

Follow all AP stories on the fallout from the war in Ukraine at https://apnews.com/hub/russia-ukraine

Share:

Author: AP News

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Originally published by Associated Press Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

Sign up for Investing Intel Newsletter