Germany is considering taking a majority stake in Uniper as the utility giant suffers massive losses during Europe's energy shock

Germany is considering a nationalization of Uniper as the utility company faces growing financial losses due to high gas prices.

The government is looking into an equity increase into Uniper that would result in a significant majority participation. The government acquired a 30% stake in Uniper in a rescue package in July, according to a report.

Uniper's shares dropped as much as 20% in Wednesday's session before recovering to 15%.

In the first half of the year, Uniper lost 12.4 billion as gas prices went up.

The European energy crisis has worsened as no Russian gas volumes are currently being supplied throughNord Stream 1 and both gas and power prices have been extremely high and volatile. The higher gas procurement cost has caused Uniper's financial losses to increase.

The German government is in talks with Fortum about a new equity stake in Uniper. No decision has been made.

Russia will not restart sending gas supplies through the Nord Stream 1 line until the sanctions against it are lifted, according to the Kremlin.

As Russia cut energy supplies to Europe, the Dutch gas futures went up about 1,000%.