Germany is nationalizing one of the country's largest energy companies, which was on the verge of bankruptcy after Russia refused to supply gas to Germany. We are talking about the company Uniper, which was the main importer of Russian gas. Now 99% of the company will come under the control of the German government for €8 billion, writes Bloomberg.
At the same time, the total cost of the company and keeping it afloat will be in the tens of billions of euros, since after a sharp jump in gas prices, Uniper was unable to service its debts, which will now form a debt burden on the German government. The decision should calm German business and bring clarity to the prospects for the German energy sector, the agency said.
“No one wants to pretend that everything is in order. But the determination and willingness of the government to make far-reaching decisions is a guarantee that we will get through this period in good shape," Economy Minister Robert Habek said.
After Russia's refusal to supply gas, Uniper has accumulated €8.5 billion in debt, moreover, the company needs to repay more than €13 billion in loans that the German government will now have to take on. At the same time, following Uniper, similar measures may also apply to other energy companies – VNG AG and Securing Energy for Europe (the former subsidiary of Gazprom).
Uniper was formed in 2016 when dirty energy assets were spun off from EON's assets, while remaining one of the largest energy and gas suppliers in the German market. It is for this reason that the German authorities cannot allow the bankruptcy of the company, because this process will simply stop the operation of enterprises for a long time, which the German authorities cannot allow. The total costs of the German government to combat the consequences of the energy crisis are already estimated at €30 billion.
However, this may only be the beginning. Analysts from the Belgian think tank Bruegel have previously calculated that the combined costs of Europe and the UK to fight the crisis have already exceeded €500 billion, but this figure could rise significantly with the onset of the heating season.