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Billions losses german energy traders receive massive bonuses

Oil And Gas

Billions losses german energy traders receive massive bonuses

German energy companies Uniper and Sefe have given some traders millions of dollars in bonuses for 2022, sources reported, just months after the firms were rescued with multi-billion-dollar bailouts as Russia stopped gas exports.

The German government has provided Sefe and Uniper with equity injections totaling about 26 billion euros ($28.6 billion) as well as loans after the energy companies suffered record losses when they purchased natural gas cargoes at record-high prices to replace lost supply from Russia, which was Germany's top gas supplier before it invaded its neighbor Ukraine.

While using taxpayers' money to pay bonuses at the bailed-out energy firms did raise questions, it also highlighted the need for these firms to remain competitive.

One of the sources claims that 200 of Sefe's traders in London received bonuses totaling hundreds of millions of dollars. Mid-level traders had additionally received $5 million to $7 million each. Significant subsidies were reportedly given out at both Uniper and Sefe, according to two additional sources.

Previously, Sefe, the German division of Russia's oil tycoon Gazprom, claimed that employee performance warranted compensation that recognized their contribution to supply security. The business declined to offer more explanations.

Uniper confirmed that while the bonuses of 2022 were significantly lesser than that of the previous years, it was paid to the trading staff. The energy firm said that the competition for traders in the energy industry was intense, therefore a zero bonus was inappropriate.

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