Gas giant Uniper submits bailout request to German government as Russia cuts supplies

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Uniper is in talks with the German government on a possible bailout.

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Struggling German gas giant Uniper submitted a bailout request on Friday seeking government support after facing extreme financial distress, Finland’s majority owner Fortum said. said in a report.

Uniper was the first German energy company to sound the alarm over skyrocketing energy bills due to cuts in Russian gas supplies.

It has been in talks with the German government over a possible bailout in recent weeks.

“We welcome that the German Parliament has now approved a ‘toolbox’ which will allow immediate relief from the effects of the gas supply crisis,” said Markus Rauramo, President and CEO of Fortum, referring to the recently adopted German energy legislation.

“Secondly, we look forward to the German government quickly beginning to implement these tools to stabilize the situation in the energy sector and in particular at Uniper, as we continue discussions on a long-term solution,” he added.

Germany’s biggest gas importer, Fortum, said Uniper has been hardest hit by reduced Russian gas flows. The company has only received 40% of contracted Russian volumes in recent weeks and has been forced to source replacement volumes at significantly higher prices.

Fortum said it was engaged in “constructive discussions” with the German government on how to stabilize Uniper’s business risks and financial situation.

No decision has yet been made on a possible solution, he added.

Uniper shares rose more than 3% on Friday afternoon. The share price listed in Frankfurt has collapsed by more than 73% since the start of the year.

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