Germany’s largest Russian gas buyer Uniper seeks gov't bailout

ANKARA

Germany's largest Russian gas buyer Uniper on Friday asked the government for a bailout as it has been hit hardest by the Russian gas curtailment amid the ongoing Russia-Ukraine war.

"Since mid-June, Uniper has received only 40% of the contracted gas volumes from Russia and has had to source the replacement volumes in the market at significantly higher prices," according to a statement by Finnish majority owner Fortum.

In recent weeks, Fortum has been in talks with the German government on how to stabilize Uniper both regarding its business risks and financial position.

"We welcome that the German Parliament has now approved a toolbox which will allow immediate relief to the effects of the gas supply crisis," said Markus Rauramo, the CEO of Fortum, referring to a newly adopted German energy legislation.

"Next, we look forward to the German government to start promptly implementing these tools to stabilise the situation in the energy industry and in particular at Uniper, as we continue talks on a long-term solution,” he said.

Fortnum said several options are on the table yet no decisions have been made on any possible solution.

The company noted that during the crisis, Fortum has already backed Uniper substantially with a €8 billion (over $8.1 billion) credit facility comprising both shareholder loan and parent company guarantees, which is almost fully drawn by Uniper.

"Fortum is focused on doing its share to stabilise the European gas and electricity markets, as Europe’s economies depend on them," it said, adding that its goal is to find a long-term solution together with the German government that addresses the consequences of a potential prolonged or even expanded gas curtailment.

The German parliament adopted several legislative changes enabling the government with a range of regulatory measures to ensure the security of supply in the current energy crisis, allowing failing companies in the energy industry to obtain liquidity assistance in the form of guarantees, loans, or recapitalization by the German state.