Energy crisis: Uniper is nationalized | tagesschau.de

Against the background of the Russian gas supply stop, the federal government becomes the majority shareholder in Germany’s largest gas importer Uniper. As soon as the agreement is implemented, the federal government will own around 99 percent of the shares in Uniper.

The ailing German gas importer Uniper is nationalized. The Federal Ministry of Economics announced in Berlin that the federal government had agreed on a stabilization package with the Finnish parent company Fortum. Fortum and Uniper confirmed the deal.

“As a result, the federal government will take over a total of 99 percent of Uniper,” according to the Ministry of Economic Affairs. “In doing so, it creates a clear ownership structure in order to secure Uniper and thus the energy supply for companies, public utilities and consumers.”

Increase capital by eight billion euros

The plan is to increase Uniper’s capital by EUR 8 billion and to acquire all of Fortum’s shares in Uniper at a price of EUR 1.70 per share – which corresponds to around EUR 500 million.

According to Uniper, the state-owned KfW bank will provide funds according to its liquidity needs. This includes the replacement of a credit line from Fortum, which consists of a shareholder loan of four billion euros and a so-called guarantee line of four billion euros.

This means that Uniper belongs to the German state, said Economics Minister Robert Habeck. The step had become necessary because the situation had worsened again since the Chancellor’s announcement on July 22. No gas has flowed through Nord Stream 1 since September 1. The country has managed the situation very well so far, but the situation has worsened for Uniper.

Measures still subject to change

The stabilization measures are still subject to change because, among other things, approvals from the EU Commission are still pending. In the fourth quarter of 2022, an extraordinary Uniper general meeting is also to decide on the measures.

Fortum currently holds almost 78 percent of Uniper. The company itself is almost 51 percent owned by the Finnish state. In July, the federal government, Uniper and Fortum had already agreed on a rescue package worth billions, which provided for a minority participation of the federal government.

Uniper supplies municipal utilities and large companies

Uniper got into financial difficulties due to the lack of gas deliveries from Russia. The energy company supplies more than 100 municipal utilities and large companies. It represents 40 percent of the German gas supply and is central to the natural gas supply in Germany. Most recently, Uniper spoke of losses of more than 100 million euros a day.

The nationalization of Uniper also calls the planned gas levy into question again. “The gas surcharge will come from October 1st,” said Economics Minister Habeck. It is a necessary bridge to ensure Uniper’s financial solidity. The departmental vote will begin today. A legally secure way had been found to “push the so-called free riders off the running board”.