Monday, December 5 2022 Sign In   |    Register
 

News Quick Search


 

News


Front Page
Power News
Gas News
Today's News
Yesterday's News
Week of Dec 05
Week of Nov 28
Week of Nov 21
Week of Nov 14
Week of Nov 07
By Topic
By News Partner
News Customization
Feedback

 

Pro Plus(+)


Add on products to your professional subscription.
  • Energy Archive News
  •  



    Home > News > Gas News > News Article

    Share by Email E-mail Printer Friendly Print

    Berlin nationalizes energy giant after Russian gas delivery halt


    September 21, 2022 - Helge Toben, dpa

     

      Berlin — The German government is set to become the majority shareholder in Uniper, Germany's largest gas importer, in an effort to prop up the company in the wake of Russia's decision to end all gas deliveries to Europe's biggest economy.

      Following the completion of a capital increase and the acquisition of Uniper shares from Finnish state-owned energy company Fortum, the German government will own around 99% of Uniper, the Economy Ministry said on Wednesday.

      Uniper has been buffeted by recent contortions in the energy market, ever since Russia cut off gas supplies to Germany through its Nord Stream 1 pipeline, claiming maintenance is needed, but cannot be conducted due to Western sanctions.

      As a result, Uniper has been facing severe financial problems, as its clients still expect fuel, even if the Russian supply has dried up. Uniper has therefore had to spend far more than planned buying up gas on the open market to fulfil its contractual obligations.

      "The further increase in replacement procurement costs has exacerbated the plight of Germany's largest importer of Russian gas," the Economy Ministry said.

      The acquisition of the shares can only take place after the fulfilment of various regulatory requirements, as well as approval at Uniper's general meeting and from the European Commission, the ministry said.

      "Uniper is a central pillar of the German energy supply," it said. "Through the majority takeover decided today, the federal government will acquire the essential rights of co-determination and control at the company in order to be able to ensure security of supply in Germany."

      Uniper already received a bailout from the German state earlier this year, but the situation has worsened to the point that a takeover was necessary to ensure the company is able to stay afloat.

      ©2022 dpa GmbH. Distributed by Tribune Content Agency, LLC.

    TOP

    Other Articles - International


    TOP

       Home  -  Feedback  -  Contact Us  -  Safe Sender  -  About Energy Central   
    Copyright © 1996-2022 by CyberTech, Inc. All rights reserved.
    Energy Central® and Energy Central Professional® are registered trademarks of CyberTech, Incorporated. Data and information is provided for informational purposes only, and is not intended for trading purposes. CyberTech does not warrant that the information or services of Energy Central will meet any specific requirements; nor will it be error free or uninterrupted; nor shall CyberTech be liable for any indirect, incidental or consequential damages (including lost data, information or profits) sustained or incurred in connection with the use of, operation of, or inability to use Energy Central. Other terms of use may apply. Membership information is confidential and subject to our privacy agreement.