Picture Alliance | Picture Alliance | Getty Images Germany agreed on Friday to bail out Uniper in a 15 billion euro ($15.24 billion) bailout deal as the embattled energy company becomes the first major casualty of Russia’s natural gas squeeze. The rescue package will see the German state acquire a 30% stake in Uniper. The energy company was the first in Germany to sound the alarm over rising energy bills and filed for a bailout for state support earlier this month. As Germany’s biggest natural gas importer, it has been hit hard by sharply reduced pipeline flows from Russia, which has sent prices skyrocketing. In a statement, Finnish majority owner Fortum said Uniper and the German government had agreed to a “comprehensive stabilization package” to provide it with financial relief. “We are living through an unprecedented energy crisis that requires strong measures. After intensive but constructive negotiations, we have found a solution that is acceptable to all parties involved,” Fortum President and CEO Markus Rauramo said in the statement. “We were driven by urgency and the need to protect Europe’s security of supply in a time of war.” Russian gas supplies to Europe have been reduced since its unprovoked invasion of Ukraine earlier this year — and subsequent sanctions imposed on Moscow by the West. Uniper has received only “a fraction of the contracted gas volumes” from Russian gas giant Gazprom since mid-June, according to Fortum, meaning it has had to buy gas at much higher prices on the spot market. This had serious consequences for Uniper’s financial position, added Fortum. — CNBC’s Sam Meredith contributed to this report.
