A negotiated solution has been reached to the crisis of Fortum's subsidiary Uniper. The German chancellor commented on the decision in the early afternoon.
German Chancellor Olaf Scholz held a press conference on Friday, where he talked about the increase in gas prices and compensation in Germany. [email protected]
[email protected] at 11:21 (edited at 13:55)
Fortum's German subsidiary Uniper's crisis has been negotiated. Fortum published the details of the rescue package.
German Chancellor Olaf Scholzheld a press conference early in the afternoon, where he confirmed, among other things, that Germany will take a 30 percent stake in Uniper and take out a hybrid loan of more than 7.7 billion euros.
However, Scholz said that Germany “does not necessarily have to keep share”.
Higher gas prices will come to consumers in Germany from September or the beginning of October, Scholz said.
Scholz said that Germany is looking for ways to the price increase is eased. According to him, a decision has been made that aid measures will be taken. According to the Chancellor, there will be a subsidy reform for households in 2023.
Tytti Tuppurainen, Minister for Europe and Ownership. Henri Kärkkäinen
Information leaked earlier
International media reported extensively about the package in advance.
News agencies reported late Thursday and early on Friday, based on its sources, that Uniper, Fortum and the governments of Finland and Germany have agreed on a rescue solution, and the agreement would include the German state becoming the owner of Uniper.
Handelsblatt reported that Germany would take a 30 percent stake in Uniper. Reuters also reported that Germany would take a 30 percent share. According to Bloomberg, the German administration would receive a 25–30 percent stake in the package, 1.70 euros per share.
According to international media sources, Finland's wish that Uniper would be divided into parts based on its various business activities would not be in the event. Handelsblatt already reported on it late yesterday, and this is what happened in the end.
Background: an all-time crisis
The Finnish state owns 51 percent of Fortum, while Fortum owns 78 percent of Uniper.
The reason behind Uniper's cost crisis is the increase in the price of natural gas, which is mainly due to the fact that the Russian gas giant Gazprom has not delivered gas to Uniper in the normal way. Uniper has had to sell gas to its customers at the old contract price, well above the new market price. Because of this, Uniper has made daily losses of up to 50 million euros.
Among other things, Uniper's management and Finnish politicians have hoped that Germany would introduce the force majeure clause made possible by its legislation. , under which it could override the old gas contracts and sell the gas at a new, higher market price.
Fortum has also hoped that Uniper would be broken up into parts, so that it could keep Uniper's hydro and nuclear power, but get rid of the loss-making natural gas sales.
Owner guidance minister Tuppurainen promised on Tuesday that taxpayers will not suffer any more ” extra costs” about Uniper's crisis.
The background of the crisis is world political upheavals, Russia's war of aggression in Ukraine and the economic war between Russia and EU countries. The West has tried to strangle Russia's military economy with its sanctions, but at the same time Russia is trying to strangle EU countries by reducing energy exports.
Germany has bigger problems than just Uniper – hoping for a mild winter and military friendliness from Russia 20.7. 7:00 Reuters: Germany gives Uniper permission to raise the price of gas – rescue package ready already on Friday? 20.7. 12:50 Handelsblatt: Uniper's rescue package almost ready – Finland's desired solution off the table 22.7. 9:56 Tuppurainen: no extra costs for taxpayers from Uniper's crisis on 19.7. 16:21 Why is it feared that Finnish money will go to the Germans and whose fault is it? Here are the answers on 21.7. 14:28