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Uniper needs another billion from the federal government

The federal government is providing additional guarantees to the energy company Uniper, which is about to be nationalized, with up to 25 billion euros over the next few years. The eight billion euros already promised were not enough.

Troubled energy company Uniper is receiving additional billions from the state to stabilize it. The eight billion already promised

The euros to save the group are not enough. The federal government is therefore providing another 25 billion euros for this year, 2023 and 2024 to compensate for Uniper’s horrendous losses. The group recorded a loss of 40 billion euros in the first nine months.

Uniper is in trouble due to the lack of gas deliveries from Russia. The company got most of its gas from Russia and now has to supply its customers with much more expensive substitutes.

Initially, the federal government wanted to save Uniper and other companies in this difficult situation with the help of the gas surcharge. But it was canceled again.

Thus, with the issuance of new shares, which only the federal government can acquire, “a capital of up to 25 billion euros will be created,” Uniper announced on Wednesday. Uniper boss Dieter Maubach explained: “This is a significant part of Germany’s gas bill, which is now paid from tax funds and not, as originally planned, via a gas levy.”

Without this relief, Uniper customers, including many municipal companies, would inevitably have faced an even higher cost surge. “Thanks to state support, Uniper can continue to supply its customers with gas under the conditions contractually agreed before the war”.

Shareholders are expected to vote on the bailout at an extraordinary general meeting on Dec. 19. It should be a formality; majority owner, Fortum from Finland, has already signaled its approval. According to the Federal Ministry of Economy, the federal government acquires 99% of Uniper; the EU Commission has yet to agree.

The head of the Uniper works council, Harald Seegatz, told the “Rheinische Post” that it is good that the change of ownership can be completed this year. “All Uniper employees have been working with full commitment for over a year to ensure security of supply despite the war and market turbulence”. He is pleased that the federal government recognizes this achievement and is committed to Uniper.

The federal government is providing additional guarantees to the energy company Uniper, which is about to be nationalized, with up to 25 billion euros over the next few years. The eight billion euros already promised were not enough.

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