Germany nationalizes Uniper, UK particulars power subsidies

The German government will hold around 99% of Uniper and 8% of its Finnish parent company Fortum (FOJCF), German Economy Minister Robert Habeck told journalists in Berlin on Wednesday.

Uniper provides 40% of the country’s gas supply and is crucial for large companies and private consumers in Europe’s biggest economy.

In July, Chancellor Olaf Scholz announced the government would step in to bail out Uniper with a package worth up to €15 billion ($15.3 billion), after it was brought to its knees by months of Russian supply cuts and soaring spot market prices.

Under the rescue deal, the government committed to provide €7.7 billion ($7.8 billion) to cover potential future losses, while state-run bank KfW agreed to increase its credit facility by €7 billion ($7.1 billion).

But Habeck said the situation had “worsened dramatically” since Russia cut off gas supplies to Europe through the Nord Stream 1 pipeline indefinitely on September 1, citing an oil leak.

Russian gas has had to be…

The post Germany nationalizes Uniper, UK particulars power subsidies appeared first on CaymanMama.com.

from CaymanMama.com https://ift.tt/NMU1EVR