German utility Uniper has applied for support from the German government after suffering financial difficulties due to reduced supplies of Russian natural gas, Reuters reported, citing a statement from Finland’s majority shareholder Fortum.
German energy giant Uniper SE is in talks with the government for a rescue package of up to 9 billion euros ($9.4 billion), Bloomberg reported, citing a source with knowledge of the matter.
The government is considering imposing a series of measures that will include loans to the company, the taking of a share and the passing on of part of the cost to consumers, the agency reports.
The company, which is among the biggest importers of Russian natural gas, announced last week that it had started talks with the government to secure liquidity. Its shares fell 28% today, taking the company’s market capitalization to €4.14 billion.
According to a Reuters report, the German government plans to use the mechanisms it had set up to deal with the coronavirus crisis to be able to take stakes in utilities that are at risk of collapse amid the energy crisis.
Under the plan, the government will be able to take voting or non-voting stakes in companies operating in critical sectors of the economy.
Source: Capital
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