Germany’s cost to rescue gas giant Uniper was estimated at €29 billion
The authorities are close to an agreement on the financial stabilization of Germany's largest gas importer, Uniper. According to the latest estimates, this operation will cost three times more than expected “(max-width: 320px) and (-webkit-min-device-pixel-ratio: 2), (max-width: 320px) and (min-resolution: 192dpi)” >
The nationalization of the largest German energy company Uniper will cost the German budget at least €8 billion, Reuters reports, citing company information.
Berlin intends to buy out Finnish Fortum's stake in Uniper (78%), after which the state's total share in its capital will be about 90%. The new financial injections will bring the total bailout package used to stabilize the company to at least €29 billion, according to Reuters.
Uniper announced that it is in talks with the government and Fortum to amend its July bailout program, which has proved inadequate given soaring gas prices. “It is assumed that the federal government will receive a significant controlling stake in Uniper,” said the company, noting that the final agreement has not yet been worked out.
Previously, Fortum provided an €8bn loan to Uniper, according to Bloomberg.
«We think it is important that Fortum returns the €8bn funding it provided to Uniper, and in general that Finnish taxpayers do not incurred unreasonable expenses because of this, — said Tytti Tuppurainen, Minister for Public Companies of Finland. And I noticed that it is too early to comment on the details of the transaction before it is completed.
Read on RBC Pro Pro Building materials are getting more expensive. How this will affect housing prices and developers Aeroflot shares Articles Pro Mid-career crisis. Three Scenarios When Something Went WrongUniper's problems began after the start of Russia's special operation in Ukraine and the reduction in Russian gas supplies: the company was forced to purchase large volumes of raw materials at higher prices on the spot market. Uniper on July 8 turned to the German government for help. The authorities began to develop an aid scheme. Uniper received a €9bn credit line from state-owned lender KfW and another €2bn to mitigate supply disruptions.
However, on 29 August Uniper requested an additional credit line €4bn to maintain its liquidity.
In July, Handelsblatt, Bloomberg and Reuters reported that German authorities were close to reaching an agreement to bail out Uniper. Then it was reported that Germany intended to invest in Uniper more than €5.1 billion, and the total amount of investments is unlikely to exceed the amount of €10 billion. No one named the exact amount then, it was still being discussed. In exchange, the German authorities planned to receive a blocking stake of up to 30% of Uniper, Bloomberg and Handelsblatt sources said. Reuters' interlocutors specified that a share of 15–30% was being discussed.
Uniper— one of the largest power generation companies in the world, it is the third largest zero-carbon electricity producer and the second largest nuclear electricity producer.
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