Finnish company Fortum will not inject funds into Uniper

Finnish company Fortum will not inject funds into Uniper

After being questioned by the parliament’s trade committee on Tuesday, property control minister Tytti Tuppurainen of the Social Democratic Party was adamant that Finnish energy company Fortum will not inject more capital into its German subsidiary Uniper.

Fortum, 51% owned by the Finnish state, owns 78% of Uniper.

The German gas player is currently in serious financial trouble and is at risk of bankruptcy after Russia first reduced and then stopped its gas supplies and the company was forced to buy gas at higher prices to fill its contractual obligations. Earlier in the year, Fortum helped Uniper with an €8 million financial deal.

According to Mr Tuppurainen, negotiations between the Finnish and German governments to resolve this crisis are “in a delicate phase”. The main interest of the Finnish side, forcefully underlined by the Commerce Committee, is to avoid the bill falling on Finnish taxpayers.

German financial magazine Handelsblatt reported on Tuesday that the German federal government would be ready to take over parts of Uniper considered critical to the country’s energy system. Such a share would constitute up to 30% of the company.

The current deadline for closing the deal is Friday, July 22.

Source

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