TIMES.KY

Cayman Islands, Caribbeanand International News
Monday, Mar 27, 2023

Germany nationalizes gas giant amid energy crisis

Germany nationalizes gas giant amid energy crisis

Germany is to nationalize gas giant Uniper in an effort to secure energy supplies amid the war in Ukraine.
The deal will see the German government take on a 98.5% stake in the firm at a cost of €8.5bn (£7.4bn).

Germany is Europe's biggest importer of Russian gas, and has been particularly squeezed as Russia has reduced supplies in recent months.

Chief executive Klaus-Dieter Maubach said the deal would help Uniper's role as "a system-critical energy supplier".

Before Russia's invasion of Ukraine it supplied Europe with about 40% of its natural gas, and has responded to Western sanctions by gradually cutting off supplies.

At the start of this month, it halted supplies through the Nord Stream 1 pipeline, claiming repairs were needed - but later said supplies would not resume until sanctions were lifted.

Uniper is the biggest buyer of Russian gas in Germany. In recent months it has had to replace Russian supplies with alternatives from the open market, where prices have soared.

Uniper's Finnish owner Fortum said the company has accumulated close to €8.5bn (£7.4bn) in gas-related losses "and cannot continue to fulfil its role as a critical provider of security of supply as a privately-owned company".

"The role of gas in Europe has fundamentally changed since Russia attacked Ukraine, and so has the outlook for a gas-heavy portfolio," Fortum chief executive Markus Rauramo said in a statement.

"As a result, the business case for an integrated group is no longer viable."

Under the terms of the deal, the German government will buy Fortum's shares in Uniper for €500m (£437m) and inject €8.0bn (£7.0bn) of cash into the business.

The government had already taken on a 30% stake of Uniper as part of a bailout agreement in July.

Earlier this month, it also entered discussions with another major gas supplier, VNG, over a possible bailout package.

Economy minister Robert Habeck said nationalizing Uniper was a "necessary" step that would help "ensure security of supply for Germany".

He also said that, despite the loss of Russian supplies, Germany had succeeded in filling its gas storage facilities to over 90% capacity ahead of winter.

"This means that, as a whole, we have coped quite well with the situation," he said. "But for Uniper the situation became significantly more dramatic and significantly worse."

At the start of September, Germany introduced a series of measures intended to cut energy use and stave off shortages over the coming months.

Businesses are no longer allowed to keep their doors open throughout the day to reduce the need for heating, and illuminated advertising must be switched off after 10pm.

The halls and corridors of most public buildings will no longer be heated, and offices can only be heated to a maximum of 19C.

In July, energy ministers across Europe also agreed to reduce their natural gas consumption by 15%.
Newsletter

Related Articles

TIMES.KY
Close
0:00
0:00
AOC explains why she opposes banning TikTok
UK: Humza Yousaf replaces Nicola Sturgeon as SNP leader and first minister in Scotland
In a dramatic U-turn against His Government: Judicial Reform Legislation Must Be Halted, Says Israeli Defense Minister Yoav Gallant
Gordon Moore, a co-founder of Intel Corporation, died at 94
Powell: Silicon Valley Bank was an 'outlier'
Donald Trump arrested – Twitter goes wild with doctored pictures
NYPD is setting up barricades outside Manhattan Criminal Court ahead of Trump arrest.
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
Home Secretary Suella Braverman tours potential migrant housing in Rwanda as asylum deal remains mired in legal challenges
Paris Rioting vs Macron anti democratic law
'Sexual Fantasy' Assignment At US School Outrages Parents
Credit Suisse to borrow $54 billion from Swiss central bank
Russian Hackers Preparing New Cyber Assault Against Ukraine
Jeremy Hunt insists his Budget will get young parents and over-50s back into work
If this was in Tehran, Moscow or Hong Kong
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
Mexican President Claims Mexico is Safer than the U.S.
A brief banking situation report
Lady bites police officer and gets instantly reaction
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
Silicon Valley Bank exec was Lehman Brothers CFO
In a potential last-ditch effort, HSBC is considering a rescue deal to save Silicon Valley Bank UK from insolvency
BBC Director General, Tim Davie, has apologized, but not resigned, yet, following the disruption of sports programmes over the weekend
Elon Musk Is Planning To Build A Town In Texas For His Employees
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
Fitness scam
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
Senator Tom Cotton: If the Mexican Government Won’t Stop Cartels from Killing Americans, Then U.S. Government Should
Banking regulators close SVB, the largest bank failure since the financial crisis
The unelected UK Prime Minister Rishi Sunak, an immigrant himself, defends new controversial crackdown on illegal migration
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
It's the question on everyone's lips: could a four-day workweek be the future of employment?
Is Gold the Ultimate Safe Haven Asset in Times of Uncertainty?
Spain officials quit over trains that were too wide for tunnels...
Don Lemon, a CNN anchor, has provided a list of five areas that he believes the black community needs to address.
Hello. Here is our news digest from London.
Corruption and Influence Buying Uncovered in International Mainstream Media: Investigation Reveals Growing Disinformation Mercenaries
Givenchy Store in New York Robbed of $50,000 in Merchandise
European MP Clare Daly condemns US attack on Nord Stream
Former U.S. President Carter will spend his remaining time at home and receive hospice care instead of medication
Tucker Carlson called Trump a 'demonic force'
US Joins 15 NATO Nations in Largest Space Data Collection Initiative in History
White House: No ETs over the United States
U.S. Jet Shoots Down Flying Object Over Canada
Being a Tiktoker might be expensive…
SpaceX, the private space exploration company, made a significant breakthrough in their mission to reach space.
China's top tech firms, including Alibaba, Tencent, Baidu, NetEase, and JD.com, are developing their own versions of Open AI's AI-powered chatbot, ChatGPT
×