Germany Russia Ukraine city Berlin Finland UPS Continental Germany Russia Ukraine city Berlin Finland

Germany nationalises biggest gas importer to avert supply crisis

Reading now: 212
theguardian.com

Germany has agreed to nationalise its biggest gas importer, Uniper, to avert a crisis as it battles energy shortages resulting from Russia’s war in Ukraine.The deal builds on a rescue package agreed in July, when Berlin took a 30% stake in the company, and includes a capital injection of €8bn (about £7bn) of government money.Uniper had been controlled by the Finnish state-owned energy company Fortum, which welcomed the announcement.

It said Berlin would buy its shares for €500m, giving the state a 98.5% stake in the gas company.Fortum’s chief executive, Markus Rauramo, said: “Under the current circumstances in the European energy markets and recognising the severity of Uniper’s situation, the divestment of Uniper is the right step to take, not only for Uniper but also for Fortum.“The role of gas in Europe has fundamentally changed since Russia attacked Ukraine, and so has the outlook for a gas-heavy portfolio.

As a result, the business case for an integrated group is no longer viable.”He said Uniper’s losses caused by Russia’s limiting natural gas supplies to European countries supporting Ukraine had reached almost €8.5bn.

Missing deliveries from Russia have had to be replaced with expensive supplies from the open market, where prices for gas have risen sharply.Uniper, which also owns the Ratcliffe-on-Soar power station in Nottinghamshire, posted an overall loss of £12bn in August, and has seen its share price collapse by 90% in the past year.Europe is reliant on gas to heat homes, and to generate electricity to power factories, raising fears of business closures, rationing and a recession as the weather turns cold.Countries across the continent have scrambled to counter soaring gas and electricity prices, to help

Read more on theguardian.com
The website financemag.cash is an aggregator of news from open sources. The source is indicated at the beginning and at the end of the announcement. You can send a complaint on the news if you find it unreliable.
DMCA