March 31, 2023

Berlin – German Govt The announcement was made on Wednesday That it would nationalize Uniper, the country’s biggest importer of Russian gas, would expand state intervention aimed at curbing energy shortages caused by Russia’s war in Ukraine.

The move follows a 15 billion euro rescue package from late July aimed at stabilizing the gas giant, which supplies 40 percent of the natural gas consumed across Germany. With an additional 8 billion euro capital increase, the German government will now own 99 percent of the company.

The deal still needs to be approved by the European Commission.

German Economic Affairs and Climate Minister Robert Habeck said on Wednesday that the move had become necessary as the situation had changed in the past few weeks. The situation has worsened, he said, especially since Russia cut off all gas supplies through the Nord Stream pipeline in early September.

“This decision was taken,” he said at the press conference, “to ensure security of supply for Germany.”

Uniper, which is one of Europe’s largest gas companies, has struggled in the wake of volatile energy markets following Russia’s invasion of Ukraine. The company, which imports about 50 percent of its gas from Russia, announced that the supply cuts led to a loss of 12 billion euros in the first half of 2022.

Uniper CEO Klaus-Dieter Maubach said the nationalization move was necessary due to the worsening situation and promised that the company would “play its part in overcoming the energy crisis.”

For months, the German government has pledged to support Uniper’s cause main role Within the country’s energy infrastructure. “We will not allow a systemically relevant company like Uniper to fail, thus jeopardizing Germany’s energy security.” Dr. Habeck in July. “An energy shortage artificially created by Russia is not a normal fluctuation that the market can digest.”

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