German energy giant Uniper has asked Berlin’s government for additional funding, raising the total bailout sought to €19bn (£16bn).
The company said its current liquidity was impacted by the West’s standoff with the Kremlin over energy supplies and the consequent surge in costs.
“As Russia does not honour its supply contracts, we have to buy this gas at a high price on the market,” said chief executive Klaus-Dieter Maubach.
“We are working at full speed with the German Government on a permanent solution to this emergency as otherwise Uniper will no longer be able to fulfil its system-critical function for Germany and Europe.”
The announcement comes weeks after ministers agreed to a €15bn rescue package, one of the biggest bailouts in German history, City A.M. reported.
Berlin acquired a 30 per cent stake in the company – which is owned by Finnish energy provider Fortum.
As part of the package, Fortum’s ownership was reduced from nearly 80 per cent to 56 per cent with Germany buying 157 million new ordinary shares for €267m, in addition to €7.7bn of capital available.
In addition, state-lender KfW will raise an existing credit line by €7bn, to €9bn in total.
In Monday’s statement, Uniper said it had fully used the funding provided by KfW.
City A.M. has approached both Uniper and the German Government for further comment.
The post Uniper asks Berlin for more help, raising bailout to £16bn appeared first on CityAM.
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