German energy supplier Uniper sees its corporate mission, according to its website, as “propelling the energy transition”.
News of its takeover by the German state early on Tuesday marks a different kind of energy transition: propelling forward Berlin’s energy nationalisation as an uncertain winter approaches.
After securing a 30 per cent stake last July, the unprecedented bailout means Germany now owns a 98.5 per cent stake in the struggling gas company.
[ Germany to nationalise gas giant Uniper in historic €8bn bailoutOpens in new window ]
Under the agreement, Berlin will inject €9 billion in cash into the firm and buy €500 million worth of shares from Uniper’s Finnish owner, Fortum.
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In addition, Fortum, which in turn has the Finnish state as a majority shareholder, will be repaid for an €8 billion loan it gave Uniper in January.
Uniper is one of Europe’s largest importers of Russian gas, which it sells on to industry and municipal bodies for heating.
As Russia throttled gas supplies, however, Uniper has been forced to meet its contractual obligations through expensive gas purchases on spot markets, where prices have surged.
Confirming the long-rumoured deal, Germany’s federal economics minister Robert Habeck described Uniper as a “central pillar of the German energy supply”.
[ Germany takes over three refineries amid energy crisisOpens in new window ]
Departing owner Fortum said its subsidiary had accumulated gas-related losses of €8.5 billion, was losing around €100 million a day, and “cannot continue to fulfil its role as a critical provider of security of supply as a privately-owned company”.
“Recognising the severity of Uniper’s situation, the divestment of Uniper is the right step to take, not only for Uniper but also for Fortum,” added Markus Rauramo, chief executive of Fortum, in a statement.
The changed market since Russia’s attack on Ukraine, he said, had “fundamentally changed” the role of gas on the Continent and made its business plan — for its gas-heavy integrated portfolio — “no longer viable”.
Uniper was also an investor in the Nord Stream 2 pipeline, carrying gas under the Baltic Sea to northeastern Germany, that was cancelled by Berlin after Russia’s invasion of Ukraine.
Uniper’s situation deteriorated still further earlier this month when state-controlled energy giant Gazprom said it was cutting off entirely the already throttled gas supply through the original Nord Stream 1 pipeline.
The Uniper bailout comes days after Berlin announced it was placing three Russian-controlled oil refineries in German state trusteeship.
Tuesday’s takeover of Uniper could force last-minute changes to an unpopular German gas levy, set to come into force on October 1st.
The energy levy was intended to raise €34 billion in revenue for hard-hit energy companies, in particular Uniper, but has proven hugely unpopular with hard-hit German consumers.
Facing a public backlash, Mr Habeck has already indicated the levy may be overhauled — or abandoned entirely.
Any changes would, in turn, increase pressure on federal finance minister Christian Lindner. Leader of the liberal Free Democratic Party (FDP), he is seeking new revenue sources to ensure Germany can return to constitution debt limits next year.
Financing a multibillion energy bailout is likely to complicate these plans and be unpopular with his liberal voter base. His FDP is already struggling in polls and will face a crucial test of its popularity, a year after taking office, in a closely-watched state election next month in Lower Saxony.
