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8 Jul, 2022 14:23

German energy giant seeks government bailout

Uniper cites “extreme financial pressure” caused by reduced Russian gas supply
German energy giant seeks government bailout

One of Germany’s largest publicly listed energy supply companies, Uniper, has applied for government support. The firm has referenced financial difficulties caused by a drop in the supply of natural gas from Russia as the reason for the move.

“Uniper has been hit hardest by the Russian gas curtailment and, as a result, is under extreme financial pressure,” reads the release, published on the parent company’s website on Friday. 

The statement goes on to say that, since mid-June, the company has received only 40% of the contracted gas volumes from Russia and has had to buy replacement volumes at “significantly higher prices.”

According to the statement, the parent company, Fortum, is currently in talks with the German government to find ways to safeguard the country’s energy security, but that no solution has been found so far. 

Russia’s Gazprom reduced the gas flow through the Nord Stream pipeline to Germany last month, citing a technical issue. A Siemens gas turbine that was sent to Canada for repairs has not been returned due to Ottawa’s sanctions on Moscow.

German Economy Minister Robert Habeck reportedly pleaded with the Canadian government to return the component, with Friday’s reports suggesting that Ottawa has relented. The reduction in gas supply and the upcoming annual maintenance of the Nord Stream pipeline have fueled fears of a deepening energy crisis in Germany and the EU.

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