Russian cuts to gas supplies force German utility Uniper to seek government bailout

Uniper is moving ahead with a request for a government rescue after weeks of cash shortages.

The company, which relies on Russian flows of natural gas, has been struggling with cash flow as it's been forced to enter the spot market for supply. The German government is interested in increasing its stake in Uniper. The government in Berlin was able to help companies through the choke in energy supplies after changing some legislative rules.

Europe is concerned that energy supplies will be hard to ensure after Russia's invasion of Ukraine. The EU is working to build up stores ahead of the winter season after Moscow pulled back flows.

Uniper is Germany's largest importer of gas and has been affected by the decrease in flows from the Kremlin. Uniper's cash has been drained due to the surge in prices in other markets. Russia is accused by Germany of slowing flows in order to retaliate for sanctions. There will be a round of maintenance on July 11 to July 21.

Uniper was facing a cash crunch before Russia invaded Ukraine. The company had to borrow money from the German government in order to cover margin calls.