Status: 03/08/2022 10:18 a.m
In view of the Russian invasion of Ukraine, the German energy group Uniper is halting its investments in Russia and writing off its stake in Nord Stream 2.
The Düsseldorf-based energy group Uniper is making a strategic U-turn in the face of Russian aggression in Ukraine. The company said it would not make any new investments in Russia. No funds would be transferred to the Russian power plant subsidiary Unipro for the time being. At the end of last year, Uniper initiated the sale of Unipro. This process will be stopped for the time being and resumed as soon as possible.
In addition, Uniper will write off its loans to Nord Stream 2 AG in the amount of EUR 987 million, including interest that has accrued to date. Uniper is one of the largest customers of the Russian gas group Gazprom and one of five western financial partners for the Baltic Sea gas pipeline, which has been completed but cannot yet be put into operation due to outstanding permits. The federal government had stopped the approval process for the time being. It is unclear whether the pipeline still has a chance in the long term or whether it has failed completely, which many observers believe is more likely. The Switzerland-based project company Nord Stream 2 AG has already laid off all of its employees, but according to its own statements has not yet filed for bankruptcy.
Before Uniper, Wintershall Dea had already written off its involvement in Nord Stream 2. Uniper now also has to forego expected annual interest income of around 100 million euros.
The Russian power plant subsidiary Unipro, in which Uniper holds 83.73 percent, recently generated around a fifth of Uniper’s operating profit.
No new long-term contracts with Russia
“It is important that the federal government is currently doing everything humanly possible to reduce Germany’s dependence on Russian raw material exports,” said Uniper boss Klaus-Dieter Maubach. As an energy supplier, Uniper sees it as its duty to make its contribution to securing the energy supply in such difficult times. Uniper will continue to fulfill its existing contracts, but will not sign any new long-term supply contracts for natural gas with Russia.
The company, which is majority owned by the Finnish utility Fortum, emerged from the spin-off of E.ON’s conventional energy divisions.