Germany nationalizes gas supplier Uniper after EU approval

BERLIN (AP) — The German authorities stated Thursday that it has nationalized power firm Uniper after the European Union gave its blessing for it to rescue the gasoline provider.

The federal government introduced its plan to nationalize Uniper in September, increasing state intervention within the power sector to forestall a scarcity ensuing from Russia’s warfare in Ukraine. The deal constructed on an preliminary rescue package deal agreed in July and includes a capital enhance of 8 billion euros ($8.5 billion) that Germany is financing.

Uniper’s present shareholders authorised the measures on Monday. The EU’s govt Fee gave its conditional approval on Tuesday. The federal government is obliged to cut back its stake to 25% plus one share by 2028, a deadline that may solely be prolonged with the Fee’s approval.

Germany’s finance and economic system ministries stated Thursday that the federal government has now taken a stake of some 99% within the firm. Uniper’s present administration stays in place.

Uniper was managed till now by Finland-based Fortum. The Finnish authorities has the most important stake in Fortum.

Earlier than the warfare in Ukraine, the corporate purchased about half of its gasoline from Russia, which began chopping deliveries to Germany in June and hasn’t equipped any gasoline to the nation because the finish of August.

Uniper has incurred big prices because of these cuts as a result of it was pressured to purchase gasoline at far larger market costs to fulfill its provide contract obligations. Final month, it stated it had initiated proceedings to hunt damages from Russia’s Gazprom at a world arbitration tribunal in Stockholm.