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According to the company’s announcement on Wednesday, the capital increase of eight billion euros planned so far from state funds “will not be sufficient in itself to stabilize Uniper”, therefore at the extraordinary general meeting scheduled for December 19, a further capital increase of up to 25 billion euros will be put on the agenda by issuing new shares, reports MTI.

Only the federal government or one of its organizations is authorized to subscribe to the shares, they wrote. According to the announcement, CEO Klaus-Dieter Maubach emphasized that “Russia’s brutal war of aggression is directed against Ukraine, but it also indirectly tests the West’s solidarity with Ukraine.”

Uniper, which supplies natural gas to many local municipal utilities, is also extremely burdened by the costs arising from the war, and in this situation, the state capital increase is “the only way to ensure the survival of Uniper in the future and thereby contribute to the energy security of our customers”, said the company manager.

Uniper got into a difficult financial situation because, in connection with Russia’s war against Ukraine, it gradually cut back and then stopped its natural gas deliveries to Germany at the end of August, even though the natural gas trade is not affected by EU sanctions, i.e. the European Union measures punishing Russia because of the war.

Due to the unilateral curtailment of deliveries, Uniper is forced to purchase the natural gas needed to supply its customers on the market at a much higher price than that set in the contracts that Moscow has not complied with.

Due to the stoppage of Russian deliveries and the steep, roughly six-fold increase in the market price of natural gas in an annual comparison, the company reached a liquidity crisis. At the end of August, he informed me that he was making a loss of more than one hundred million euros per day. According to data published in the German press, the loss in the January-September period could have been roughly 40 billion euros.

The federal government considers Uniper, which supplies more than 100 utilities and thus indirectly supplies roughly 40 percent of Germany’s consumers, as a company of systemic importance in the country’s energy supply, and therefore did not allow it to collapse.

It first supported it with loans through the state development bank (KfW), then in September it agreed with its main owner, the Finnish state-owned energy company Fortum, to replace it – paying 480 million euros for its shares – and stabilize it.