German energy behemoth wants government assistance | MENAFN.COM

Wednesday, 10 August 2022 07:22 GMT

German energy behemoth wants government assistance


(MENAFN) According to Reuters, German energy company Uniper is seeking a government bailout owing to the financial effect of declining Russian natural gas supply.

Discussions are ongoing to supply “stabilization measures” for the utility, according to the German Economy Ministry. “The reason for this is the sharp rise in gas prices and the reduced supply volumes from Russia,” it added.

Uniper CEO Klaus-Dieter Maubach stated that the talks covered possible guarantees, increased credit facilities, and perhaps the state acquiring an ownership position. He did not say how much money the firm was looking for.

“Business development has noticeably deteriorated due to the war in Ukraine,” Maubach informed a news agency. The supply squeeze has reportedly provoked the energy firm to withdraw its outlook for 2022.

Uniper, one of Europe's top importers of Russian gas, has been under pressure as a result of Moscow's supply shortage. Due to component shortages and technical challenges caused by Moscow sanctions, Russian gas shipments via the Nord Stream pipeline to Germany were reduced by up to 60% this month.

MENAFN03072022000045011137ID1104469277


Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.