FRANKFURT, Aug 17 (Reuters) – Germany’s Uniper (UN01.DE) is the most high profile corporate casualty of Europe’s energy crunch. It alleges that its long-term Russian partner Gazprom (GAZP.MM) has brought it to the brink of insolvency by withholding gas.
Describing itself as a “pawn” in the crisis triggered by Russia’s invasion of Ukraine, Germany’s largest importer of Russian gas last month received a 15 billion euro government bailout so it could afford to buy elsewhere. read more
Russia has cited turbine problems as its reason for cutting gas supply via the main line into Germany, Nord Stream 1 while other export channels are also unused, or at reduced capacity usage. read more
Uniper on Wednesday reported a 12.3 billion euro ($12.5 billion) loss which it said was due to Russian export cuts.
Here is how Uniper ended up in such dire straits.
AUGUST
Germany sets a gas levy that allows Uniper and its rivals to pass on 90% of the costs related to gas purchases to offset lower Russian gas supplies to customers from Oct. 1, in a move to save its importers from faltering. read more
JULY
The German government agrees to a 15 billion euro Uniper rescue deal and will take a 30% stake and more than quadruple a credit line with state-lender KfW (KFW.UL) to 9 billion euros. read more
Germany earlier committed itself to raising money via a gas levy to fund bailouts for importers and uphold its gas distribution. read more
Gazprom cuts gas flows on the Nord Stream 1 (NS1) pipeline to a fifth of capacity. read more
JUNE
Russia turns down gas exports after the West imposed sanctions in response to the invasion of Ukraine, citing the delayed return of serviced equipment on the main NS 1 route. NS 1 flows fall to 40% capacity. read more
Uniper withdraws 2022 outlook and calls for bailout. read more
MAY
Uniper implements Moscow’s demand to pay for gas in roubles which the European Commission said could breach sanctions. read more
APRIL
Uniper hit by 3 billion euros first quarter net loss, impairments related to Russian generation unit (UPRO.MM). read more
MARCH
Uniper tries to appease investor concerns by signalling exit from Russia and sale of its 83.7% Unipro stake. read more
FEBRUARY
Uniper says it will propose a 95% cut in its 2021 dividend. read more
The Nord Stream 2 pipeline link in which it was a co-financier, is abandoned amid Russia’s invasion of Ukraine, leaving a 1 billion euro write-down. It would have doubled the NS 1’s capacity of 55 billion cubic metres a year. read more
Russia on Feb. 24 invades Ukraine, calling it a “special military operation” to disarm its neighbour. read more
JANUARY
Uniper secures credit facilities worth 10 billion euros from main shareholder Fortum (FORTUM.HE) and German state bank KfW plus 1.8 billion euros in bank loans in a precautionary move to address high prices and volatility. read more
2021
Global gas markets became tight in a post-COVID recovery and Russia started sending less westwards, pointing to the imminent start of Nord Stream 2, which it said would increase supply.
Uniper, which was feeling stress from a shift to decarbonisation that forced the shutdown of coal plants, maintained throughout that Russia was a reliable shipper.
LEGACY
Uniper represents the legacy business of Ruhrgas which E.ON (EONGn.DE) took over in 2003 and fully absorbed in 2013.
The purchase which cemented joint German-Russian trade and hydrocarbon exploration links was opposed by the cartel office and by some as pandering to pro-Moscow business interests.
E.ON spun off a majority of Uniper in 2016 and later agreed to sell its remaining stake to Fortum, which now holds 78%.
Source - How Russian gas crisis took toll on Germany’s Uniper
(c) Thompson Reuters
