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The German government has agreed to nationalize Uniper, the country’s largest gas importer.
The move expands state intervention in the industry to prevent energy shortages due to Russia’s war in Ukraine.
The Uniper deal builds on a rescue package agreed in July, which includes an €8bn (£7bn) capital increase to be funded by the government.
As part of the agreement, the government will take a majority stake in Uniper, which is currently controlled by Finland-based Fortum.
The Finnish government owns the largest stake in Fortum.
Uniper’s losses are mounting as Russia cuts gas supplies to European countries that back Ukraine.
The price of the fuel needed to heat homes, generate electricity and power plants has soared, with fears of business closures, rationing and a recession intensifying as the weather turns colder.
European countries scrambled to deal with a price spiral and prioritized securing their winter energy supplies, including filling their natural gas storage.
Just last week, Germany took control of three Russian-owned refineries before an embargo on Russian oil goes into effect next year.
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