German energy giant seeks government bailout – Reuters – RT Business News
Uniper has taken a financial hit due to cut gas supplies from Russia, media say
German energy giant Uniper is seeking a government bailout due to the financial impact of dwindling supplies of Russian natural gas, Reuters reported on Thursday.
Discussions are underway to provide « stabilization measures » for the public service, according to the German Ministry of Economics. “The reason for this is the sharp rise in gas prices and the reduction in supply volumes from Russia,” it was explained.
Uniper chief executive Klaus-Dieter Maubach said negotiations included possible guarantees, increased credit facilities or even state equity. He did not reveal how much money the company was looking for.
« Business development has deteriorated noticeably due to the war in Ukraine », Maubach told Bloomberg. Tighter supply reportedly prompted the energy company to withdraw its outlook for the year.
READ MORE:
Germany calculates costs of cutting Russian gas supply
One of Europe’s largest importers of Russian gas, Uniper is under pressure due to lack of supply from Moscow. This month, Russian gas flows through the Nord Stream pipeline to Germany were cut by 60% due to parts shortages and technical problems related to sanctions imposed on Moscow.
The company’s Unipro unit operated five power plants in Russia that accounted for almost a fifth of the utility’s profits last year. Sanctions, which block access to these profits, and international pressure prompted the company to begin the process of selling the unit.
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