Energy giant Uniper SE is in talks over a possible bailout by the German government following a cut in gas supplies from Russia, forcing the company to buy fuel at spot prices at higher prices, Bloomberg reports.
Uniper said it was in talks with the government about a possible increase in state-backed loans from KfW or even an investment in its equity to ensure liquidity.
Restrictions on Russian gas have forced the company, Germany’s leading buyer of Russian gas, to withdraw its forecasts for the year.
Shares of the company plunged up 18% on Thursday to a five-year low. The parent company Fortum Oyj fell 8%.
“Business developments have deteriorated significantly due to the war in Ukraine,” Klaus-Dieter Maubach, CEO of Uniper, said in a statement. “We are talking to the government about stabilization measures.”
Russia’s Gazprom PJSC delivers about 40 percent of its contract volumes by mid-June, according to Uniper. Moscow has reduced flows through the Nord Stream pipeline, citing technical problems. The decline has affected other countries such as Italy and Australia, while gas futures have climbed more than 40% in the last two weeks.
Source: Capital
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