Sweden and Finland to offer liquidity guarantees to energy companies

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STOCKHOLM/HELSINKI – Finland and Sweden on Sunday announced plans to offer billions of dollars in liquidity guarantees to energy companies in their countries after Russia’s Gazprom shut down the Nord Stream 1 gas pipeline, deepening Europe’s energy crisis .

Finland aims to offer 10 billion euros ($9.95 billion) and Sweden plans to offer 250 billion Swedish kronor ($23.2 billion) in liquidity guarantees.

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Swedish Finance Minister Mikael Damberg said on Sunday the guarantees would last until March next year in Sweden and also cover all Nordic and Baltic countries for the next two weeks only.

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Without government guarantees, power producers could have ended up in “technical bankruptcy” on Monday, Damberg said.

Falling gas flows from Russia before and after its invasion of Ukraine in February has already driven European prices up nearly 400% in the past year, sending gas costs skyrocketing. electricity.

Rapidly rising electricity prices have resulted in paper losses on energy companies’ electricity futures contracts, forcing them to find funds to post additional collateral with exchanges. ($1 = 10.7633 Swedish crowns) ($1 = 1.0049 euros) (Reporting by Supantha Mukherjee in Stockholm and Essi Lehto in Helsinki; Editing by Terje Solsvik and Hugh Lawson)


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