Home Business Avoid industry collapse Germany nationalizes energy giant Uniper | Gas | Nationalization | Russia

Avoid industry collapse Germany nationalizes energy giant Uniper | Gas | Nationalization | Russia

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Avoid industry collapse Germany nationalizes energy giant Uniper | Gas | Nationalization | Russia

Beijing time:2022-09-22 09:03

[NTDTV, Beijing time, September 22, 2022]Russia has suspended the transmission of Nord Stream 1 natural gas, putting the German energy industry in jeopardy. After taking control of several Russian-owned refineries last week, Germany announced on Wednesday (September 21) that it would nationalize energy giant Uniper to prevent the collapse of the energy industry.

The German government announced on Wednesday that it would inject 8 billion euros to nationalize gas giant Uniper, while spending 500 million euros to buy nearly 80 percent of Uniper’s stake from its Finnish parent company Fortum. After the transaction is completed, the German government will hold about 99% of Uniper’s equity, ensuring that Uniper will not go bankrupt in the energy crisis.

Klaus-Dieter Maubach, CEO of Uniper Energy, said: “If our company goes bankrupt, it will certainly trigger a chain reaction in the German gas supply, possibly all the way to Germany’s electricity supply, and even to countries outside Germany.”

If Uniper does go bankrupt, Germany’s entire energy industry will collapse.

German Economy Minister Habeck: “After an analysis of the market and a study of alternatives, we have taken this decision to ensure the security of the (energy) supply in Germany.”

Uniper mainly buys gas from Russia and sells it to German customers, earning the difference. Uniper had to buy more expensive alternatives such as LNG to keep supplies after Russia cut gas supplies. While the cost has increased significantly, it has been firmly restricted by the energy price ceiling, and the loss has reached 10 billion euros.

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In order to ensure the security of energy supply, the German government had to come to the rescue. Economy Minister ROBERT HABECK said the nationalisation process will take at least three months to complete.

Comprehensive report by NTDTV reporter Lin Yi

URL of this article: https://www.ntdtv.com/gb/2022/09/22/a103533969.html

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