Germany's energy company, Uniper (UN01.DE), is engaging in talks regarding a potential government bailout as the repercussions of diminished Russian gas supplies reverberate throughout Europe, resulting in a decline in the company's share value.
Uniper has reportedly received only 40% of the gas volumes agreed upon in their contract with Gazprom.
The German government aims to fill gas storage to 80% capacity in order to prevent the crisis from escalating during the winter season, and they have currently reached a level of 61% storage capacity.
Uniper CEO, Klaus-Dieter Maubach, has indicated that the discussions for government support involve various possibilities, such as guarantees, increased credit facilities, or even the state acquiring an equity stake in the company.
Similar actions to support strategic companies are also being taken by other European countries, including Spain, the Czech Republic, and Hungary.
The ongoing tightness in the gas market has compelled utilities across the continent to make costly spot market purchases. Furthermore, government-imposed price caps intended to protect consumers have further strained the financial situation of suppliers. European gas buyers are eagerly awaiting updates on whether Russian gas supply will resume after the scheduled maintenance period for Nord Stream from 11th to 21st July.
