Germany to nationalize gas giant to fight crisis

Uniper Power Plant in Petershagen, Germany, 20 of August 1200.| Photo: EFE/EPA/SASCHA STEINBACH

Germany has announced that it will nationalize the energy giant Uniper, due to the intensified energy crisis for cuts in Russian gas supplies. The statement was made this Wednesday (15) by the government and the public group Fortum, the Finnish owner of the company.

” The government will assume about 99% of Uniper, which is a central pillar of the German energy supply,” the country’s economy ministry said in a statement.

The company supplies gas to hundreds of German municipalities. The agreement replaces an initial aid plan released in July, according to which Berlin would have a share of 21% in the group, the largest importer of gas from Germany.

Berlin will buy all shares of Fortum at the price of 1,41 euro per share, for a total of 500 millions of euros, according to the statement. Germany will also carry out a capital increase of 8 billion euros in the company, as announced by the government.

“In the current circumstances of the European energy market, and recognizing the seriousness of Uniper’s situation, this divestment by Uniper is the right step, not only for Uniper, but also for Fortum”, declared Markus Rauramo, president of the Finnish group.