Uniper seeks increase in €2bn state credit line amid crisis

Germany's Uniper has drawn down its entire €2bn ($2bn) state credit line, as it struggles with financial losses after a slump in its Russian gas supplies, and is seeking to increase it, the company reported on July 18.

Uniper has applied to increase the credit line from state bank KfW, and earlier this month also submitted an application for the German government to introduce stabilisation measures. These measures will include allowing Uniper to pass on increased procurement costs to customers and the government receiving an equity stake in Uniper SE.

Uniper has informed its customers about the possibility of rising prices.

The company reported a drop in its Russian gas supply after Gazprom slashed flow via the Nord Stream pipeline by 60% last year. It has since entered into bailout talks with the German government, and been forced to dip into its stored gas reserves that were meant to be saved for winter in order to cover the supply shortfall.

"Uniper is currently paying the price for the supply shortfalls in German gas supply due to curtailed deliveries from Russia," CEO Klaus-Dieter Maubach said in a statement. "In order to secure our liquidity and fulfil our supply contracts with our customers, we are forced to take steps that must clearly be described as emergency measures."