The gas giant Uniper asked the German government on Friday for a rescue plan.
Germany’s largest gas importer, Düsseldorf-based Uniper, has been hit hard by reduced Russian gas flows. The company has warned that losses could reach 10 billion euros this year.
“The situation is no longer tenable for us, which is why today we submitted the official request for state aid. The federal government has created the necessary instruments for this, we now hope for a quick solution”, said Uniper CEO Klaus-Dieter Maubach. said in a statement Friday afternoon.
The call for a bailout was expected after talks between the gas company and the government intensified in recent weeks. The Cabinet on Tuesday proposed a reform of Germany’s energy security law, which allows financial aid to be granted to energy companies.
“Politically, one thing is clear: We will not allow a systemically important company to go bankrupt and thereby cause turbulence in the global energy market. With the new legislation of the Energy Security Act , we have several options to act and we will act,” said Economy Minister Robert Habeck.
However, local media reported that there were concerns over aid to Uniper from Habeck’s Green Party, a member of the ruling coalition, as the company also operates nuclear power plants in Sweden and gas and coal power plants in Russia.