Application for state aid: Scholz pledges support to Uniper

In order not to stumble further, the gas importer Uniper has submitted an application for state stabilization measures. The details are now being negotiated. Chancellor Scholz pledged support.

Chancellor Olaf Scholz promised support to the energy company Uniper, which had gotten into trouble because of the gas crisis, after it applied for state aid. “In any case, we made a political decision that we will help Uniper,” said Scholz after the top-level talks on German business in Munich. The company, its employees and the population can rely on that.

Scholz did not want to comment on the details of possible state aid: “We will discuss the specific path with the company,” he said. But everyone can be sure that the federal government will make its contribution.

Economics Minister Robert Habeck also said that Unipers should be prevented from going bankrupt. “We will not allow a systemically important company to go bankrupt and the global energy market to experience turbulence as a result,” said the Greens politician. The government is working flat out on stabilization measures.

Uniper is hoping for quick help

Uniper is struggling with the increased gas prices and has therefore been in talks with the federal government for days. Finally, in the afternoon, the company officially applied for state aid, which had been in the air for a long time. The Federal Council had previously approved the legislative package on a protective gas shield. The proposal is aimed at a fair distribution of costs, an increase in the existing credit line through the state development bank KfW and a possible participation of the federal government in the company, as Uniper explained in a mandatory notification to the stock exchange. According to the new law, energy companies can pass on their higher costs in an emergency or transfer them to customers via a surcharge. However, both mechanisms are not yet effective.

The measures are intended to help end the losses that are currently being incurred and to cover Uniper’s liquidity needs. The company now hopes “to receive the necessary assistance in the short term on the basis of our application,” said company boss Klaus-Dieter Maubach at a press conference. For him, short-term means within a few weeks.

“We’re not about to go bankrupt”

Maubach said he was “confident” that an agreement would be reached soon. At the same time, he rejected speculation about imminent bankruptcy. “We’re not on the verge of bankruptcy.” This is also not a scenario that the company is dealing with. On the contrary, he sees an “outstanding opportunity” to stabilize the company with state aid.

Warning of further rising prices

The Uniper boss underpinned the warnings of drastically rising gas prices. “A very, very big price wave is coming towards German consumers.” The high purchase prices are currently not even visible on their bills. Maubach was also personally disappointed by those responsible at the Russian state-owned company Gazprom. Business relationships have existed for over 50 years, the German side has always paid on time, the Russian partner has always delivered gas.

Central role for gas supply in Germany

Uniper plays a central role in Germany’s energy supply and supplies many municipal utilities. The company is the largest foreign customer of the Russian gas giant Gazprom. Due to the sharp rise in gas prices and the reduced gas deliveries from Russia, the supplier was under great pressure. Because the group cannot currently pass on additional costs when purchasing gas to customers due to the throttling of Russian gas deliveries through the Nord Stream 1 pipeline. The company had announced that this would result in significant financial burdens. Uniper is also one of the largest electricity producers in Germany. With its gas storage facilities, the group also plays an important role in securing Germany’s supply in winter.

The extent of the help is still unclear

It is still unclear to what extent the federal government will participate in Uniper or to what extent the credit line granted by KfW, which has not yet been used, could be increased. So far it is two billion euros. Bremen Mayor Andreas Bovenschulte said in the Bundesrat that there were discussions about launching a “nine billion injection” for Uniper in order to stabilize the company. Government spokesman Steffen Hebestreit did not want to confirm this.