Uniper announced Friday that the German government would take a 30% stake in the company at a cost of billions of dollars.
The Chancellor of Germany spoke during a press conference.
According to the Wall Street Journal, Uniper is the top importer of Russian gas in Germany, and has struggled financially as Russia slows its flow of gas into Europe.
The package will include a $7.1 billion increase in an existing credit line from state bank KfW and $7.8 billion in capital in exchange for nearly issued Uniper shares.
Consumer gas and electricity prices in Germany have risen to new highs this year as Uniper has been forced to import more non-Russian gas at higher prices.
France said on July 6 that it plans to nationalize its largest electricity provider, Electricity de France, due to its own financial troubles.
Uniper's shares fell steeply on Friday.
The European Union agreed to a partial ban on Russian crude oil imports by the end of the year, but has yet to impose a ban on natural gas imports. Natural gas will be delivered to Europe for 10 days before it's resumed Thursday. The EU urged member countries to reduce their gas usage by 15% because of the threat of Russia cutting off gas supplies.
A majority of the time. That is how much of the EU's natural gas was supplied by Russia in 2020. The EU imported crude oil from Russia in 2020.
The Chancellor of Germany said that Uniper is in trouble. It is a company that is very important for the economy of this country. It has bought gas from a number of suppliers. Supplies are no longer secure.
The Wall Street Journal reported that Germany was going to bail out the utility.
Fears of Moscow keeping gas taps closed led to the restart of the key gas line.
France will nationalize the largest utility company in the country.
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