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Uniper’s share price veered wildly after the announcement, jumping at first but later falling sharply as the details of the rescue sank in. The company has lost about 80 percent of its value this year, making it worth just over €3 billion, an amount far overshadowed by the money the government deemed necessary to bail it out.
Germany is facing its worst energy crisis in decades, after Russia invaded Ukraine in February, setting off an economic battle between Moscow and Europe, the United States and its allies. The resulting huge rise in energy prices upended the business model of Uniper, which imports more Russian natural gas than any other company in Germany.
For decades, Uniper bought most of its gas from Gazprom, Russia’s state-owned supplier, and sold it to German factories and municipalities. Since the start of the war in Ukraine, Gazprom has broken its long-term contracts and begun reducing the amount of gas it provides to Europe. To make up for the reduction in the Gazprom supply, Uniper has been forced to buy other gas at higher prices.
As Uniper’s costs were spiking, the German government has sought to prevent it and other energy firms from passing the higher costs on to customers. That will change as early as Sept. 1, when the government will activate legislation that was drafted earlier this year to help ease the bite of the energy crisis.
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