Uniper asks for government help after Russian gas shortage

• German utility Uniper has formally requested a rescue package from Berlin.
•  Utility drove to the edge of insolvency by a reduction in Russian gas imports.
•  The request also aims to enlarge the €2 billion credit facility with state-owned KfW bank.

Uniper has formally requested a rescue package from Berlin, a move that would likely result in the government holding a significant stake of the utility-driven to the edge of insolvency by a reduction in Russian gas imports.

The largest purchaser of Russian gas in Europe has been losing tens of millions of euros per day as it attempts to fill the void with more expensive gas purchased on the open market without being able to pass on the additional cost to customers.

Uniper announced on Friday that it has “filed a request to the German government for stability measures” via which it would seek to offset a portion of its increased expenses by imposing a temporary tax on gas purchasers.

The request to the German government also aims to enlarge an undrawn €2 billion credit facility that was initially agreed with the state-owned KfW bank at the beginning of the year, when Uniper was in need of money after being on the wrong side of energy price hedges.

The corporation noted that the proposal “contains equity components that would lead to a significant participation of the federal government in Uniper,” but did not specify the value of such a stake.

Uniper stated that Fortum, the utility’s largest stakeholder, would also consider restructuring the company and “creating a security of supply corporation under the ownership of the German government.”