German energy supply giant Uniper said Friday it is asking the government for a bailout amid a growing natural gas crunch due to the war in Ukraine.
Uniper, which is Germany's biggest importer of Russian gas, said in a statement that its board has applied to the government for “stabilization measures.”
The move could see the government pump billions of euros (dollars) into Uniper to keep the company afloat. Germany's Cabinet had approved a plan preparing for such measures earlier this week.
The company 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.
Uniper said government bailout it was seeking was "aimed at ceasing the current accumulation of substantial losses, covering Uniper’s liquidity needs and protecting Uniper’s investment-grade credit rating.”
The company said its major shareholder 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.
