Germany to Nationalize Ailing Uniper After Russian Natural-Gas Cuts

Germany will nationalize Uniper, seeking to save the country’s largest gas importer that was hit hard by Russian natural-gas cuts to Europe, the Wall Street Journal reported. The German government said Wednesday that it would take a 99% stake in the energy giant and inject in €8 billion, equivalent to around $8 billion. Berlin will acquire the stake of Uniper’s parent company, Finnish utility Fortum Oyj. Uniper was Germany’s largest importer of Russian natural gas and suffered heavy financial losses after Moscow throttled supplies. Uniper was forced to buy gas in a market where prices have hit record highs in recent months. With Uniper’s nationalization, Berlin is moving to save a systemically important company as Europe’s races to shift away from its decadeslong reliance on Russian fossil fuel exports. European officials say Russia’s decision to cut gas supplies is an economic attack in retaliation for the West’s support for Ukraine. "This step has become necessary because the situation has worsened significantly,” Robert Habeck, Germany’s economy minister, said Wednesday. “The state will do everything necessary to keep systemically important companies in Germany stable at all times.” Read more. (Subscription required.)