net_left adver left

Germany hands $15 billion bailout to Uniper after Russian gas hit

Saturday, July 23, 2022

By Christoph Steitz, Essi Lehto and Holger Hansen

FRANKFURT/HELSINKI/BERLIN (Reuters) -The German government stepped in to rescue Uniper with a 15 billion euro ($15.28 billion) bailout on Friday after the gas importer became the biggest casualty of Europe's energy standoff with Russia so far.

Under a bailout that is among the biggest in German corporate history, the government will take a 30% stake in Uniper, reducing the ownership of its Finnish parent Fortum to 56% from nearly 80% after weeks of tough negotiations.

It will also allow Uniper to start passing on some of the costs of soaring gas prices to consumers in the coming months, which German Chancellor Olaf Scholz said would be offset by more welfare support to shield poorer households.

The bailout underscored how Russia's invasion of Ukraine in February has major implications for governments across Europe as they grapple with soaring energy costs and fears of acute gas shortages over the peak demand winter months.

Uniper shares plunged 20% to record lows following the announcement. Fortum shares were 3% lower.

"We are living through an unprecedented energy crisis that requires robust measures," Fortum CEO Markus Rauramo said, adding the deal reflected the interests of all parties. "We were driven by urgency and the need to protect Europe's security of supply in a time of war."

At a news conference, Scholz asked the country to pull together, invoking the popular song lyric "you'll never walk alone" in English, while announcing the Uniper bailout.

Under the agreement, Germany will buy 157 million new ordinary Uniper shares for 267 million euros and make available capital of up to 7.7 billion against issuance of mandatory convertible instruments.

In addition, state-lender KfW will raise an existing credit line by 7 billion euros to 9 billion in total.

Scholz said the government would eventually relinquish its stake.

CONDITIONS AND APPROVALS

The package needs approval from the European Commission, and requires confirmation of Uniper's investment grade rating by agency S&P. The deal also needs the backing of Uniper shareholders.

It carries certain conditions, including that Uniper withdraws a lawsuit against the Netherlands over its coal phase-out as well as a commitment by the Duesseldorf-based group to suspend dividend payments for the duration of its stabilisation period.

Following the rescue, Uniper, Fortum and the German government will work on a long-term solution to reform the company's wholesale gas contract architecture, which has exposed the group to billions in losses.

The parties intend to agree on the longer-term solution by the end of 2023, they said.

Germany has accused Russia of deliberately strangling gas flows to Europe on spurious pretexts in retaliation for Western sanctions after the invasion of Ukraine. Moscow denies doing so and said it is ready to fulfil all its commercial obligations.

A drop in Russian gas supplies meant that, rather than being able to rely on long-term price agreements, Uniper had to buy expensive gas on the spot market to make up for the shortfall.

Germany has said that utilities risked a collapse similar to the Lehman Brothers bank whose demise helped to trigger the 2008 financial crisis.

Fortum's Rauramo said it was too early to estimate what the total losses for Uniper and Fortum would be as these depended on the price and quantity of Russian gas to Europe.

Fortum and the German government have agreed that Germany will cover 90% of price increases which means Fortum would need to cover the rest.

"In the meantime, we have the 9 billion total liquidity facility which can be drawn upon just to cover the cash impact but eventually losses will be covered by an equity like instrument," Rauramo said.

($1 = 0.9847 euros)

Leave your comment
HOT AUTO TRADE BOT SOFTWARE adver right
APPROVED BROKERS
net_home_top HOT AUTO TRADE BOT SOFTWARE
16-08-2022 20:11:50 (UTC+7)

EUR/USD

1.0151

-0.0008 (-0.08%)

Summary

Buy

Moving Avg:

Buy (9)

Sell (3)

Indicators:

Buy (5)

Sell (4)

EUR/USD

1.0151

-0.0008 (-0.08%)

Summary

Buy

Moving Avg:

Buy (9)

Sell (3)

Indicators:

Buy (5)

Sell (4)

GBP/USD

1.2056

+0.0002 (+0.02%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (6)

Sell (0)

USD/JPY

134.49

+1.17 (+0.88%)

Summary

↑ Sell

Moving Avg:

Buy (4)

Sell (8)

Indicators:

Buy (0)

Sell (8)

AUD/USD

0.7008

-0.0014 (-0.20%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (9)

Sell (1)

USD/CAD

1.2891

-0.0013 (-0.10%)

Summary

Buy

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (6)

Sell (2)

EUR/JPY

136.54

+1.09 (+0.80%)

Summary

Neutral

Moving Avg:

Buy (7)

Sell (5)

Indicators:

Buy (3)

Sell (6)

EUR/CHF

0.9641

+0.0027 (+0.28%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (5)

Sell (2)

Gold Futures

1,789.05

-9.05 (-0.50%)

Summary

↑ Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (7)

Sell (1)

Silver Futures

19.992

-0.280 (-1.38%)

Summary

Buy

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (8)

Sell (0)

Copper Futures

3.6210

+0.0035 (+0.10%)

Summary

Neutral

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (3)

Sell (3)

Crude Oil WTI Futures

89.19

-0.22 (-0.25%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (8)

Brent Oil Futures

94.70

-0.40 (-0.42%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (1)

Sell (9)

Natural Gas Futures

9.242

+0.514 (+5.89%)

Summary

Neutral

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (3)

Sell (6)

US Coffee C Futures

222.88

-2.62 (-1.16%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (7)

Euro Stoxx 50

3,792.25

+2.63 (+0.07%)

Summary

Buy

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (8)

Sell (1)

S&P 500

4,297.14

+16.99 (+0.40%)

Summary

Neutral

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (3)

Sell (4)

DAX

13,845.60

+28.99 (+0.21%)

Summary

↑ Buy

Moving Avg:

Buy (7)

Sell (5)

Indicators:

Buy (6)

Sell (1)

FTSE 100

7,543.60

+34.45 (+0.46%)

Summary

Neutral

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (4)

Sell (4)

Hang Seng

19,830.52

-210.34 (-1.05%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (9)

Sell (0)

US Small Cap 2000

2,020.40

+7.30 (+0.36%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (7)

Sell (1)

IBEX 35

8,479.50

+52.50 (+0.62%)

Summary

Neutral

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (5)

Sell (2)

BASF SE NA O.N.

44.157

+0.097 (+0.22%)

Summary

Buy

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (7)

Sell (1)

Bayer AG NA

54.05

+0.49 (+0.91%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (7)

Sell (1)

Allianz SE VNA O.N.

179.40

+0.62 (+0.35%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (9)

Adidas AG

170.63

-2.31 (-1.34%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (9)

Sell (0)

Deutsche Lufthansa AG

6.720

-0.014 (-0.21%)

Summary

Neutral

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (2)

Sell (4)

Siemens AG Class N

111.38

-0.82 (-0.73%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (7)

Sell (0)

Deutsche Bank AG

8.982

+0.040 (+0.45%)

Summary

Neutral

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (5)

Sell (2)

 EUR/USD1.0151Buy
 GBP/USD1.2056↑ Buy
 USD/JPY134.49↑ Sell
 AUD/USD0.7008↑ Buy
 USD/CAD1.2891Buy
 EUR/JPY136.54Neutral
 EUR/CHF0.9641↑ Buy
 Gold1,789.05↑ Sell
 Silver19.992Buy
 Copper3.6210Neutral
 Crude Oil WTI89.19↑ Sell
 Brent Oil94.70↑ Sell
 Natural Gas9.242Neutral
 US Coffee C222.88↑ Sell
 Euro Stoxx 503,792.25Buy
 S&P 5004,297.14Neutral
 DAX13,845.60↑ Buy
 FTSE 1007,543.60Neutral
 Hang Seng19,830.52↑ Buy
 Small Cap 20002,020.40↑ Buy
 IBEX 358,479.50Neutral
 BASF44.157Buy
 Bayer54.05↑ Buy
 Allianz179.40↑ Sell
 Adidas170.63↑ Buy
 Lufthansa6.720Neutral
 Siemens AG111.38↑ Buy
 Deutsche Bank AG8.982Neutral
Mua/Bán 1 chỉ SJC
# So hôm qua # Chênh TG
SJC Eximbank6,580/ 6,680
(-10/ -10) # 1,639
SJC HCM6,600/ 6,700
(-10/ -10) # 1,659
SJC Hanoi6,600/ 6,702
(-10/ -10) # 1,661
SJC Danang6,600/ 6,702
(-10/ -10) # 1,661
SJC Nhatrang6,600/ 6,702
(-10/ -10) # 1,661
SJC Cantho6,600/ 6,702
(-10/ -10) # 1,661
Cập nhật 16-08-2022 20:11:52
Xem lịch sử giá vàng SJC: nhấn đây!
ↀ Giá vàng thế giới
$1,775.13-3.35-0.19%
Live 24 hour Gold Chart
ʘ Giá bán lẻ xăng dầu
Sản phẩmVùng 1Vùng 2
RON 95-V25.34025.840
RON 95-III24.66025.150
E5 RON 92-II23.72024.190
DO 0.05S22.90023.350
DO 0,001S-V24.88025.370
Dầu hỏa 2-K23.32023.780
ↂ Giá dầu thô thế giới
WTI$89.19-1.34-1.50%
Brent$94.70-0.92-0.97%
$ Tỷ giá Vietcombank
Ngoại tệMua vàoBán ra
USD23.230,0023.540,00
EUR23.145,5524.441,71
GBP27.456,8428.627,78
JPY171,08181,12
KRW15,4318,80
Cập nhật lúc 18:54:08 16/08/2022
Xem bảng tỷ giá hối đoái
adver main right