Posted Jul 25, 2022 by Martin Armstrong
Germany and Finnish parent company Fortum signed a $15.24 billion deal to save energy company Uniper. In return, Germany will take a 30% stake in the company. Uniper reported only receiving a fraction on contracted gas from Russia’s Gazprom since mid-June, and it seems shipments may continue to slow or cease entirely. Uniper has been purchasing gas elsewhere at a premium, dampening their profits.
“We are living through an unprecedented energy crisis that requires robust measures. After intensive but constructive negotiations, we found a solution that in an acceptable way met the interest of all parties involved,” said Fortum’s President and CEO Markus Rauramo.
Chancellor Olaf Scholz said saving Uniper is of “paramount importance” for the German economy. Sholz said the “government plans to introduce mechanism to pass through 90% of replacement costs for missing Russian gas to consumers as of October 1.” The costs will be passed on to the consumers, of course.