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    Germany in bailout talks with Uniper: press

Summary

Uniper reported in mid-June that it was receiving 25% less gas than contracted from Russia, after Gazprom reduced flow via the Nord Stream 1 pipeline.

by: NGW

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Germany in bailout talks with Uniper: press

Germany's government is in talks to bail out energy group Uniper, which has taken a financial hit as a result of cuts in Russian gas supply, Reuters reported on June 30.

Uniper reported in mid-June that it was receiving 25% less gas than contracted from Russia, after Gazprom reduced flow via the Nord Stream 1 pipeline – a move that has been slammed by European leaders as politically-motivated. This has forced the company to resort to costly spot market purchases of gas.

On the other hand, European utilities face additional pressure from governments capping prices for energy consumers. Uniper has been forced to drop its financial forecasts and has issued a profit warning.

Uniper CEO said the talks included possible guarantees, the raising of credit facilities or even the state taking an equity stake, according to Reuters. Fortum, which has a 78% interest in Uniper, said it was supporting the subsidiary with credit lines and guarantees, but said the situation would require "national and sector-wide efforts."