Beautiful Virgin Islands

Tuesday, Jun 24, 2025

Germany nationalizes gas giant amid energy crisis

Germany nationalizes gas giant amid energy crisis

Germany is to nationalize gas giant Uniper in an effort to secure energy supplies amid the war in Ukraine.
The deal will see the German government take on a 98.5% stake in the firm at a cost of €8.5bn (£7.4bn).

Germany is Europe's biggest importer of Russian gas, and has been particularly squeezed as Russia has reduced supplies in recent months.

Chief executive Klaus-Dieter Maubach said the deal would help Uniper's role as "a system-critical energy supplier".

Before Russia's invasion of Ukraine it supplied Europe with about 40% of its natural gas, and has responded to Western sanctions by gradually cutting off supplies.

At the start of this month, it halted supplies through the Nord Stream 1 pipeline, claiming repairs were needed - but later said supplies would not resume until sanctions were lifted.

Uniper is the biggest buyer of Russian gas in Germany. In recent months it has had to replace Russian supplies with alternatives from the open market, where prices have soared.

Uniper's Finnish owner Fortum said the company has accumulated close to €8.5bn (£7.4bn) in gas-related losses "and cannot continue to fulfil its role as a critical provider of security of supply as a privately-owned company".

"The role of gas in Europe has fundamentally changed since Russia attacked Ukraine, and so has the outlook for a gas-heavy portfolio," Fortum chief executive Markus Rauramo said in a statement.

"As a result, the business case for an integrated group is no longer viable."

Under the terms of the deal, the German government will buy Fortum's shares in Uniper for €500m (£437m) and inject €8.0bn (£7.0bn) of cash into the business.

The government had already taken on a 30% stake of Uniper as part of a bailout agreement in July.

Earlier this month, it also entered discussions with another major gas supplier, VNG, over a possible bailout package.

Economy minister Robert Habeck said nationalizing Uniper was a "necessary" step that would help "ensure security of supply for Germany".

He also said that, despite the loss of Russian supplies, Germany had succeeded in filling its gas storage facilities to over 90% capacity ahead of winter.

"This means that, as a whole, we have coped quite well with the situation," he said. "But for Uniper the situation became significantly more dramatic and significantly worse."

At the start of September, Germany introduced a series of measures intended to cut energy use and stave off shortages over the coming months.

Businesses are no longer allowed to keep their doors open throughout the day to reduce the need for heating, and illuminated advertising must be switched off after 10pm.

The halls and corridors of most public buildings will no longer be heated, and offices can only be heated to a maximum of 19C.

In July, energy ministers across Europe also agreed to reduce their natural gas consumption by 15%.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Airlines Evaluate Flight Cancellations Amid Escalating US-Iran Tensions
Starmer Invites Innovators to Join Government Talent Scheme
UK Economy’s Strong Opening Quarter Shows Signs of Cooling
Harrods Seeks Court Order to Secure Al Fayed Estate for Victims
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
BBC Demands Perplexity AI Immediately Stop Using Its Content
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
Political Turmoil Resurfaces in Belgium Amid Economic Concerns
Fed policymakers divided on timing of interest rate cuts
Trump signals imminent agreement with Harvard University
Inheritance tax referendum alarms Swiss billionaire community
Japan cancels bilateral security meeting amid US defence demands
AI skeptic Emily Bender warns that ‘the emperor has no clothes’
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
×