Shareholders of German gas giant Uniper pave way for nationalization

Uniper shareholders cleared the way for the far-reaching nationalization of the major German energy importer, which has been ailing since Russia invaded Ukraine and choked off gas supplies to Europe.

At an extraordinary general meeting on Monday, the shareholders of Germany’s largest gas trader voted in favour of the stabilization measures agreed with the German government and the previous Finnish majority shareholder Fortum.

The rescue package includes a capital injection of €8 billion ($8.5 billion), to which only the German government is entitled to subscribe. Furthermore, the federal government will take over Fortum’s share in Uniper. Berlin will then have a stake of around 98.5% in Uniper.

In addition, up to €25 billion is to be raised through the issue of new shares.

Uniper was thrown into turmoil after Russia began squeezing its gas supplies to Germany. In order to meet its supply obligations to municipal utilities and industrial companies, Uniper had to buy gas at high prices on the energy exchanges. Daily losses at times amounted to over €200 million.

In September, German Economy Minister Robert Habeck announced plans for the government to become the majority shareholder in a bid to save Uniper from insolvency.