The firm was plunged into crisis when Russia slashed supplies of gas to Europe as tensions soared following the invasion of Ukraine.
FRANKFURT: Germany had started the process to sell most of its stake in energy giant Uniper, the government said Tuesday, more than three years after nationalising the company following its near collapse amid the Ukraine war.
The firm was plunged into crisis when Russia slashed supplies of gas to Europe as tensions soared following its February 2022 invasion of Ukraine. It was just one example of how the conflict has rocked long-standing energy ties between Moscow and Berlin, with the controversial Baltic Sea gas pipeline Nord Stream 2 also scrapped.
Berlin bailed out Uniper – which had relied on Russian gas imports – in September 2022 to the tune of €13.5 billion , fearing its demise could send shock waves through Europe’s biggest economy. But to get EU approval for the cash injection, Berlin promised to eventually reduce its shareholding, and the finance ministry confirmed Tuesday that the sale had begun.
“The government is launching the official process to determine demand from potential buyers,” a ministry spokeswoman told AFP. Berlin plans to reduce its stake from a current level of over 99% to 25% and one share, the spokeswoman said. This is permitted under the agreement with the EU and would give the government a “blocking minority”, allowing it to maintain influence over key energy security decisions.
“The government will ensure that the company as a whole remains viable for the future and that Germany’s security of supply is safeguarded,” the spokeswoman said. Uniper, based in Duesseldorf, welcomed the news, saying it was “now more stable, more resilient, and more clearly positioned strategically”. Key gas importer The company, currently valued at around €18 billion, was Germany’s biggest gas importer when it was nationalised and is a key supplier to industrial companies and local authorities.
It is not clear whether it will maintain the same value once a sale begins, but Berlin still stands to earn several billion euros from offloading its stake. According to the Sueddeutsche Zeitung newspaper, which first reported the start of the sale, the government is looking for long-term investors who will preserve the group as a single entity, such as pension funds.
The aim is to finalise the transactions by November, it said, and the government is also reportedly preparing to list some of the group’s shares on the stock market. The sudden loss of gas supplied by Russia’s state-owned Gazprom forced Uniper to pay vastly higher prices on the open market to fulfil contracts. In the first nine months of 2022, Uniper reported a net loss of €40 billion – one of the biggest losses in German corporate history.
In 2024, a Stockholm-based tribunal awarded Uniper over €13 billion in damages from Gazprom over its failure to deliver agreed volumes of gas, though it was unclear whether Uniper would be able to get any of the money. The group’s finances have improved markedly in the past two years, and it has proposed resuming dividend payments to shareholders after a pause of several years. As well as being a key importer of gas, Uniper also operates major storage facilities. It has around 7,200 employees.
Energy Security Gas Supplies German Government Germany Energy Nord Stream Russian Gas Ukraine War Uniper Sale Uniper Stake
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Global geopolitical landscape as Russia and Ukraine conflict continues, focus shifts towards countries with largest armed forcesThe ongoing Russia-Ukraine conflict and escalating tensions in the Middle East have led to a shift in focus towards countries with the largest armed forces, as indicated by The Military Balance 2025 report published by the International Institute for Strategic Studies (IISS).
Read more »
Estonia's CIA Chief Warns of Deepening Ukrainian Crisis: Russia is Losing Men and Units, Could Face Unpopular MobilisationKaupo Rosin, the foreign intelligence chief of Estonia, shares his concerns of Russia's situation in Ukraine during an interview with Reuters. He highlights Russia's inability to advance significantly on the battlefield, loss of manpower, and the impact of Western sanctions on the Russian economy and its potential for a general mobilisation.
Read more »
Putin orders three-day nuclear drills as Ukraine conflict escalatesMOSCOW, May 19 — Russia’s army on Tuesday began three days of nuclear weapons drills involving thousands of troops across the country, as Kyiv escalates its drone attacks and...
Read more »
AS lanjut pengecualian sekatan minyak Russia selama 30 hariJabatan Perbendaharaan Amerika Syarikat (AS) pada Isnin melanjutkan pengecualian sekatan selama 30 hari terhadap kargo minyak Russia.
Read more »