Germany in bailout talks with Uniper: press
Germany's government is in talks to bail out energy group Uniper, which has taken a financial hit as a result of cuts in Russian gas supply, Reuters reported on June 30.
Uniper reported in mid-June that it was receiving 25% less gas than contracted from Russia, after Gazprom reduced flow via the Nord Stream 1 pipeline – a move that has been slammed by European leaders as politically-motivated. This has forced the company to resort to costly spot market purchases of gas.
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On the other hand, European utilities face additional pressure from governments capping prices for energy consumers. Uniper has been forced to drop its financial forecasts and has issued a profit warning.
Uniper CEO said the talks included possible guarantees, the raising of credit facilities or even the state taking an equity stake, according to Reuters. Fortum, which has a 78% interest in Uniper, said it was supporting the subsidiary with credit lines and guarantees, but said the situation would require "national and sector-wide efforts."