Germany Nationalizes Country's Biggest Gas Importer Uniper

The German government said Wednesday that it has agreed to nationalize the country's biggest gas importer, Uniper, in order to prevent an energy shortage.

A capital increase of 8 billion euros will be financed by the government under the deal with Uniper. Uniper, which was previously controlled by Fortum, will be taken over by the government. The biggest shareholder in Fortum is the Finns.

Robert Habeck said the deal was necessary because Uniper plays a significant role in the German gas market. The European Commission must approve it.

Before the war, Uniper bought half of its gas from Russia.

Russia has cut back on natural gas supplies to Europe. Prices for the fuel needed to heat homes, generate electricity and power factories have gone up, raising fears of a recession as the weather turns cold.

Read more about Europe's stance on Russian gas There is a fear of a cut-off in the upcoming winter.

Europe prioritized securing their energy supplies for winter by filling their natural gas storage. Last week, Germany took control of three Russian-owned oil refineries before the embargo on Russian oil takes effect.

Germany has been able to fill its gas storage facilities to over 90 percent capacity despite Russia's decision to stop delivering gas through theNord Stream 1 line. He said that the wholesale price of gas has almost halved.

Habeck said that the situation has been dealt with well. The situation for Uniper becomes dramatically worse.

The nationalization of Uniper was done to ensure the security of supply for Germany, according to Habeck.

Germany is in a good position to get through the winter with enough energy, as new natural gas terminals are expected to begin work in the coming months, according to the Chancellor.

The German government took control of three Russian-owned refineries last Friday to make sure energy security. The Federal Network Agency is taking over the administration of two subsidiaries of Russia's largest oil company.

The government said that the Trusteeship was due to last for six months.

The network regulator was put in charge of the German subsidiary of the company in April after the parent company abruptly cut ties.

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