Uniper Submitted Bailout Application for Government Support
Jul 8, 2022 By MarketDepth
Uniper (OTCMKTS: UNPRF), a German gas company, submitted a bailout application for government support on Friday as it struggles financially, according to Finnish majority owner Fortum. It was the first German energy company to bring attention to rising energy bills amid the lack of supplies of Russian gas. Uniper has been discussing a tentative bailout with the German government throughout the past few weeks.
“We welcome that the German Parliament has now approved a ‘toolbox’ which will allow immediate relief to the effects of the gas supply crisis.”Markus Rauramo, president and CEO of Fortum
“Next, we look forward to the German government to start promptly implementing these tools to stabilise the situation in the energy industry and in particular at Uniper, as we continue talks on a long-term solution,” he added.
Billions of Dollars Done
The action could push the government to move billions of dollars into Uniper as a means to keep it running. Germany’s Cabinet had already approved a plan in preparation for such measures, earlier in the week.
Uniper has reduced its financial outlook for the year, highlighting the massive reduction in gas deliveries by Russia’s Gazprom recently. Fortum is in talks with the government to address the restrictions and financial burden.
“Fortum’s proposal includes a restructuring of Uniper aiming at establishing a security of supply company under the ownership of the German government,” it said