# Uniper’s rocky road to German nationalisation Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-09-21 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Germany's Uniper Nationalisation Amid Gas Crisis Meta Description: Discover how Germany took steps to nationalise Uniper following Gazprom's export halt after Russia's invasion of Ukraine, despite Western sanctions. URL: https://financedigest.com/unipers-rocky-road-to-german-nationalisationhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-09-21t141039z1lynxmpei8k0pcrtroptp4uniper-stake-germany-1736815180568-compressed.jpg) (Reuters) – Germany’s government announced steps on Wednesday to nationalise gas importer Uniper, brought to its knees after long-term Russian partner Gazprom withheld exports in the wake of Russia’s invasion of Ukraine. Russia closed the important Nord Stream 1 export pipeline into Germany three weeks ago, saying Western sanctions were hindering operations. European politicians say this is a pretext by Moscow for weaponising gas supplies. Here is how Uniper ended up being nationalised. SEPTEMBER Under Wednesday’s nationalisation plan, Germany will hold 99% of Uniper once it completes a [capital increase](https://www.financedigest.com/frances-ynsect-to-refocus-bug-business-after-capital-increase.html "France’s Ynsect to refocus bug business after capital increase") and buys the holding of its Finnish parent company Fortum. Uniper relied on long-term [supply contracts with Gazprom along with sector peers SEFE](https://www.financedigest.com/trafigura-enters-3-billion-loan-to-supply-germanys-sefe-with-gas.html "Trafigura enters billion loan to supply Germany’s Sefe with gas") – formerly known as Gazprom Germania – and EnBW subsidiary VNG. All three may benefit from a planned gas levy from Oct. 1. [Uniper is weighing legal proceedings against Gazprom](https://www.financedigest.com/germanys-uniper-to-restart-coal-fired-power-plant-as-gazprom-halts-supply-to-europe.html "Germany’s Uniper to restart coal-fired power plant as Gazprom halts supply to Europe") in a Swedish arbitration court. AUGUST Germany [sets the gas levy that would allow Uniper and its rivals to pass on 90% of spiralling gas prices](https://www.financedigest.com/unicredit-sets-out-8-billion-aid-package-for-italy-clients-hit-by-surging-prices.html "UniCredit sets out billion aid package for Italy clients hit by surging prices") to customers. JULY The [German government agrees to a 15 billion euro](https://www.financedigest.com/stellantis-to-invest-130-million-euros-in-german-plant-for-new-opel-electric-car.html "Stellantis to invest 130 million euros in German plant for new Opel electric car") Uniper rescue deal and to more than quadruple a credit line with state-lender KfW. [Germany commits itself to raising](https://www.financedigest.com/kuehne-raises-lufthansa-stake-to-17-5-as-germany-sells-remaining-shares.html "Kuehne raises Lufthansa stake to 17.5% as Germany sells remaining shares") money via the gas levy, to fund bailouts and uphold gas distribution. JUNE Uniper withdraws 2022 outlook and calls for a bailout. MAY Uniper implements Moscow’s demand to pay for gas in roubles which the [European Commission](https://www.financedigest.com/german-economy-expected-to-grow-modestly-in-2023-european-commission.html "German economy expected to grow modestly in 2023 – European Commission") said could breach sanctions. APRIL Uniper hit by a 3 [billion euro](https://www.financedigest.com/telecoms-group-orange-signs-sustainability-linked-refinancing-of-6-billion-euros-syndicated-credit-facility.html "Telecoms group Orange signs sustainability-linked refinancing of 6 billion euros syndicated credit facility") first quarter net loss, posts impairments related to its Russian generation unit. MARCH Uniper tries to appease investor concerns by signalling exit from Russia and [sale of its 83.7% Unipro stake](https://www.financedigest.com/sap-to-cut-3000-jobs-explore-qualtrics-stake-sale.html "SAP to cut 3,000 jobs, explore Qualtrics stake sale"). FEBRUARY Uniper [says it will propose a 95% cut](https://www.financedigest.com/amazon-ceo-says-job-cuts-to-exceed-18000-roles.html "Amazon CEO says job cuts to exceed 18,000 roles") in its 2021 dividend. The [Nord Stream](https://www.financedigest.com/denmark-invites-nord-stream-operator-to-help-salvage-unidentified-object.html "Denmark invites Nord Stream operator to help salvage unidentified object") 2 pipeline link in which it was a co-financier, is abandoned amid Russia’s invasion of Ukraine, leaving a 1 billion euro write-down. NS 2 would have [doubled the NS 1’s capacity](https://www.financedigest.com/varo-energy-buys-80-of-dutch-biogas-firm-aims-to-double-capacity-by-2026.html "Varo Energy buys 80% of Dutch biogas firm; aims to double capacity by 2026") of 55 billion cubic metres a year. Russia on Feb. 24 invades Ukraine, [calling it a “special](https://www.financedigest.com/four-european-countries-call-for-special-treatment-of-defence-in-eu-debt-rules-document.html "Four European countries call for special treatment of defence in EU debt rules – document") military operation” to disarm its neighbour. JANUARY Uniper secures credit facilities worth 10 billion euros from main shareholder Fortum and [German](https://www.financedigest.com/intel-wants-5-billion-more-in-german-subsidies-for-chip-plant-bloomberg-news.html "Intel wants billion more in German subsidies for chip plant – Bloomberg News") state bank KfW plus 1.8 billion euros in bank loans in a precautionary move to address high prices and volatility. 2021 Global gas markets became tight in a post-COVID recovery and Russia started sending less westwards, [pointing to the imminent start of the Nord Stream](https://www.financedigest.com/new-intelligence-points-to-pro-ukraine-group-in-nord-stream-attack-nyt.html "New intelligence points to pro-Ukraine group in Nord Stream attack -NYT") 2 pipeline. Uniper, which was already feeling the strain from a decarbonisation [shift that forced the shutdown of coal](https://www.financedigest.com/s-africa-says-uk-climate-envoy-to-visit-to-discuss-helping-shift-from-coal.html "S.Africa says UK climate envoy to visit to discuss helping shift from coal") plants, maintained throughout that Russia was a reliable shipper. LEGACY Uniper represents the legacy business of Ruhrgas which E.ON took over in 2003 and fully absorbed in 2013. The purchase which cemented joint German-Russian [trade and hydrocarbon exploration links was opposed by the cartel office](https://www.financedigest.com/uaes-adnoc-to-open-swiss-trading-office-next-year.html "UAE’s ADNOC to open Swiss trading office next year") and by some as pandering to pro-Moscow business interests. E.ON spun off a [majority of Uniper in 2016 and later agreed to sell its remaining stake](https://www.financedigest.com/deutsche-telekom-reaches-majority-stake-in-t-mobile-u-s-ceo.html "Deutsche Telekom reaches majority stake in T-Mobile U.S. – CEO") to Fortum. ($1 = 1.0087 euros) (Reporting by Vera Eckert, editing by Miranda Murray and Alexander Smith) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---