Uniper said it would ask shareholders to formally approve the rescue deal on December 19 – Copyright AFP Ina FASSBBENDER
Troubled gas giant Uniper said on Wednesday the German government would need to spend an extra 25 billion euros under a planned nationalization to prevent the company’s collapse in the wake of Russia’s war in Ukraine.
The German government agreed in September to nationalize the debt-laden company after Moscow’s shutdown of a key gas pipeline and skyrocketing energy prices left Uniper bankrupt.
But the government’s initial cash injection of 8 billion euros “will not be enough to stabilize Uniper,” the company said in a statement.
Another capital increase to the tune of 25 billion euros ($26 billion) will be needed to help cover “the huge additional costs of the gas cuts in Russia that continue to be borne primarily by Uniper,” chief executive Klaus said. -Dieter Maubach.
The revised figure comes after Berlin scrapped a controversial plan to force German consumers to pay a tax on gas to help importers cope with rising prices, which would have covered some of Uniper’s costs. .
The government will finance the bailout with a €200 billion “special fund” designed to cushion the impact of the energy crisis on homes and businesses.
Uniper said it would ask shareholders to formally approve the rescue deal on December 19.
As Germany’s largest gas importer, Uniper has been particularly hard hit by the fallout from the war in Ukraine, which forced it to buy gas at significantly higher prices on the open market.
It has reported a net loss of 40 billion euros for the first nine months of the year, one of the biggest losses in German business history.
Germany’s government stepped in to save the company fearing its collapse could jeopardize gas supplies and wreak havoc in Europe’s biggest economy.
Germany, which relied heavily on Russian gas imports before the war, has scrambled to find alternative suppliers and fill up reserves before the coldest winter sets in.
The country announced last week that its gas storage facilities were 100 percent full.