Germany to Bail Out Utility Hit Hard by Russian Gas Shortfall
A Uniper gas-fired power plant in Gebersdorf, Germany.
Photo:
Nicolas Armer/Zuma Press
Germany will take a 30% stake in
Uniper
UN01 -19.10%
SE and provide a bailout deal after the ailing utility company was hit hard by dwindling supplies of Russian gas and rising energy prices.
Uniper, Germany’s largest importer of Russian gas and one of Europe’s largest utilities, has hemorrhaged cash daily as it has been forced to buy supplies at much higher prices from alternative sources after Russia reduced deliveries in June.
Russia restarted the Nord Stream pipeline on Thursday after 10 days of annual maintenance but supplies continued to be capped at 40% of its capacity. Moscow blamed technical problems for the Nord Stream shortfall, which German officials have described as an economic attack.
Uniper shares whipsawed after the bailout announcement and were last down around 8%.
German Chancellor
Olaf Scholz
interrupted his vacation to announce the rescue of Uniper, as part of a broader set of measures to tackle the energy crisis.
“Uniper is of great importance for economic development in this country…and its energy security,” Mr. Scholz said at a press conference.
“We will do everything that needs to be done and we will do it as long as it’s necessary and we will emerge as a stable country from the challenge posed to energy markets by Russia’s illegal attack on Ukraine,” he added.
Write to Georgi Kantchev at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
A Uniper gas-fired power plant in Gebersdorf, Germany.
Photo:
Nicolas Armer/Zuma Press
Germany will take a 30% stake in
Uniper
UN01 -19.10%
SE and provide a bailout deal after the ailing utility company was hit hard by dwindling supplies of Russian gas and rising energy prices.
Uniper, Germany’s largest importer of Russian gas and one of Europe’s largest utilities, has hemorrhaged cash daily as it has been forced to buy supplies at much higher prices from alternative sources after Russia reduced deliveries in June.
Russia restarted the Nord Stream pipeline on Thursday after 10 days of annual maintenance but supplies continued to be capped at 40% of its capacity. Moscow blamed technical problems for the Nord Stream shortfall, which German officials have described as an economic attack.
Uniper shares whipsawed after the bailout announcement and were last down around 8%.
German Chancellor
Olaf Scholz
interrupted his vacation to announce the rescue of Uniper, as part of a broader set of measures to tackle the energy crisis.
“Uniper is of great importance for economic development in this country…and its energy security,” Mr. Scholz said at a press conference.
“We will do everything that needs to be done and we will do it as long as it’s necessary and we will emerge as a stable country from the challenge posed to energy markets by Russia’s illegal attack on Ukraine,” he added.
Write to Georgi Kantchev at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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