German energy giant Uniper asks for bailout amid Ukraine war

Jul 7, 2022, 5:17 PM | Updated: Jul 8, 2022, 9:13 am
File--- File picture shows exterior view of the 'Bierwang' gas storage facility of the 'Uniper' ene...

File--- File picture shows exterior view of the 'Bierwang' gas storage facility of the 'Uniper' energy company in Unterreit near Munich, Germany, Wednesday, July 6, 2022. (AP Photo/Matthias Schrader, file)

(AP Photo/Matthias Schrader, file)

BERLIN (AP) — German Chancellor Olaf Scholz pledged Friday to help troubled energy giant Uniper after it asked the government for a bailout to cope with surging prices for natural gas due to the war in Ukraine.

In a statement, Uniper said the “stabilization measures” it is seeking were “aimed at ceasing the current accumulation of substantial losses, covering Uniper’s liquidity needs and protecting Uniper’s investment-grade credit rating.”

Scholz assured the company — Germany’s biggest importer of Russian gas — of the government’s support.

“This is a company that is of great important to large parts of the economy and to many consumers,” he said during a visit to a trade fair in Munich. “Everyone can be sure: we will play our part to save Uniper.”

The company said its major shareholder, Finland-based Fortum, was also in talks with the German government to “address the negative impact of the current gas supply restrictions on Uniper.”

“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.

While the government could take a big stake in Uniper to keep the company afloat or let it pass on higher purchasing costs to consumers, Economy Minister Robert Habeck said Friday that the next steps were still being discussed.

“We won’t let a systemically relevant company become insolvent and cause turbulences on the global energy markets,” he said. “We will act.”

Uniper downgraded its financial outlook for this year last week, pointing to a sharp reduction in gas deliveries by Russia’s Gazprom in recent weeks that has forced it to buy substitute supplies at significantly higher prices.

“Since Uniper cannot yet pass on these additional costs, this results in significant financial burdens,” it said at the time.

Germany activated the second phase of its three-stage emergency plan for gas supplies last month. Triggering the third stage would allow the government to determine which sectors and companies gas suppliers need to prioritize, effectively amounting to state energy rationing.

___

Follow all AP stories on the fallout from the war in Ukraine at https://apnews.com/hub/russia-ukraine.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

(AP Photo/Gerry Broome, File)...
Associated Press

Fish and Wildlife shoots wrong wolf, more attacks confirmed

Wolves from two packs in northeast Washington state have attacked more cattle
12 hours ago
Associated Press

Closing prices for crude oil, gold and other commodities

Benchmark U.S. crude oil for November delivery rose $4.19 to $92.64 a barrel Friday. Brent crude for December delivery rose $3.50 to $97.92 a barrel. Wholesale gasoline for November delivery rose 5 cents to $2.73 a gallon. November heating oil rose 16 cents to $4.02 a gallon. November natural gas fell 22 cents to $6.75 […]
12 hours ago
FILE - Kalush Orchestra from Ukraine singing Stefania perform during the Grand Final of the Eurovis...
Associated Press

Liverpool to host 2023 Eurovision Song Contest for Ukraine

LONDON (AP) — The 2023 Eurovision Song Contest will be staged in the English city of Liverpool, the BBC said Friday, after Britain was asked to hold the event on behalf of designated host country Ukraine. The birthplace of The Beatles beat Glasgow, Scotland, the other U.K. finalist. In all, seven British cities had applied […]
2 days ago
Snowbird William Wellema talks about his frustration at not being allowed on to the island to surve...
Associated Press

As search goes on, Floridians await OK to survey Ian’s wrath

FORT MYERS BEACH, Fla. (AP) — William Wellema has been living under a bridge for four days, waiting to get to Fort Myers Beach on Florida’s Estero Island to see if his vacation home survived Hurricane Ian. On Friday, he was beyond frustrated as he continued to await permission to drive across. “They’re saying it’s […]
2 days ago
FILE - Nobel Commitee chairman Thorbjorn Jagland sits next to an empty chair with the Nobel Peace P...
Associated Press

Bialiatski joins small group of jailed Nobel Peace laureates

STOCKHOLM (AP) — Belarussian pro-democracy campaigner Ales Bialiatski, who shared the Nobel Peace Prize with human rights groups in Russia and Ukraine, is the fourth person in the 121-year history of the Nobel Prizes to receive the award while in prison or detention. Bialiatski, 60, who founded the non-governmental organization Human Rights Center Viasna, was […]
2 days ago
Singer Kesha appears at the premiere of the film "Studio 666," in Los Angeles on Feb. 16, 2022, lef...
Associated Press

Judge eyes summer trial in Kesha’s legal clash with Dr. Luke

NEW YORK (AP) — After almost a decade, the legal fight between pop singer Kesha and producer Dr. Luke is headed to trial in New York next summer, a judge said Friday. Manhattan Judge Jennifer Schecter said jury selection could start in either late June or early July, asking the two sides to choose and […]
2 days ago

Sponsored Articles

Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Swedish Cyberknife Treatment...

The revolutionary treatment of Swedish CyberKnife provides better quality of life for majority of patients

There are a wide variety of treatments options available for men with prostate cancer. One of the most technologically advanced treatment options in the Pacific Northwest is Stereotactic Body Radiation Therapy using the CyberKnife platform at Swedish Medical Center.
Work at Zum Services...

Seattle Public Schools announces three-year contract with Zum

Seattle Public Schools just announced a three-year contract with a brand-new company to the Pacific Northwest to assist with their student transportation: Zum.
Swedish Cyberknife 900x506...

June is Men’s Health Month: Here’s Why It’s Important To Speak About Your Health

According to the Centers for Disease Control and Prevention, men in the United States, on average, die five years earlier than women.
...

Anacortes – A Must Visit Summertime Destination

While Anacortes is certainly on the way to the San Juan Islands (SJI), it is not just a destination to get to the ferry… Anacortes is a destination in and of itself!
...

Ready for your 2022 Alaskan Adventure with Celebrity Cruises?

Celebrity Cruises SPONSORED — A round-trip Alaska cruise from Seattle is an amazing treat for you and a loved one. Not only are you able to see and explore some of the most incredible and visually appealing natural sights on the planet, but you’re also able to relax and re-energize while aboard a luxury cruise […]
German energy giant Uniper asks for bailout amid Ukraine war