Oil And Gas
The largest corporate fatality of Europe’s energy crisis so far, Uniper, said the German government would need to pump an additional 25 billion euros ($25.8 billion) into the struggling oil importer to cover losses incurred after Russia stopped its gas supply.
The modified bailout deal reflects the cancellation of a oil levy, originally designed to help German oil importers bear the cost, and raises the tally for Uniper’s nationalization to nearly 51.5 billion euros, including credit lines and equity injections.
Last month, sources said that tens of billions in additional funding were necessary to stabilize Uniper after Berlin decided to throw away the levy, which would have allowed gas firms to transfer most of the higher procurement charges to customers.
Under the most recent deal, the German government will subscribe to authorized capital of up to 25 billion euros to cover damages from outstanding Russian gas volumes until 2024, Uniper said.
Germany’s largest gas importer, Uniper, nearly collapsed after Russia, its biggest supplier, halted gas flows earlier in 2022 in what the German government said was retaliation against sanctions over the the war in Ukraine, which the Russian government refutes.