Finland, Germany agree to Uniper bailout deal

Berlin [Germany], July 22 (ANI/Xinhua): Uniper, its Finnish parent company Fortum and the German government agreed on Friday to a bailout deal for the German gas importer that is hard hit by soaring prices and dwindling supplies.
The three parties have adopted a "comprehensive stabilization package", a move to stabilize Uniper's financial situation and secure public access to energy in Europe, said Finland's Minister responsible for ownership steering Tytti Tuppurainen.
Uniper, Germany's biggest gas importer, has been hit hard by Russia's curtailment of gas exports and filed for support from the German government two weeks ago. Under the bailout deal, the German government will take a 30 per cent stake in Uniper and will offer the firm up to 7.7 billion euros in financing.
Under the terms of the package, the Finnish state retains its majority stake in Fortum and can develop it in the best possible way, Tuppurainen said in a statement.
"According to our assessment, the outcome now reached, which was approved by Fortum's board after careful consideration and analysis, is the best possible compromise under these circumstances and within this timeframe," she said.
Tuppurainen said Uniper is a critical company for the energy security of Germany and Europe at large.
The agreement with the German government "stabilizes Uniper financially as a system-critical energy partner and preserves it as a single entity," Uniper Chief Executive Officer (CEO) Klaus-Dieter Maubach said.
Uniper's parent company Fortum, majority-owned by the Finnish state, said it was also satisfied with the agreement.
"After intensive but constructive negotiations, we found a solution that in an acceptable way met the interest of all parties involved," commented Fortum's President and CEO Markus Rauramo.
New geopolitical realities have shaken the European energy system to the core, and this determines a new framework for European energy companies, he said.
"Whilst we have now achieved immediate stabilization of Uniper, further efforts will be required to create a long-term sustainable basis for the gas business," he added.
Fortum is Uniper's largest shareholder with a 78 per cent stake. After the deal, this will decrease to 56 per cent.
Uniper is of "paramount importance" to Germany's economic development, German Chancellor Olaf Scholz said on Friday. With the agreed measures, Berlin had made a "substantial contribution to saving the company."
Further aid was approved by extending an existing credit line from 2 billion euros to 9 billion euros via the state-owned promotional bank KfW, according to the German government. (ANI/Xinhua)