(Bloomberg) — Germany’s historic bailout of natural gas giant Uniper SE is unlikely to be Europe’s last energy-sector rescue amid the crisis sparked by Russia’s war in Ukraine.
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“There might be more of this because in view of the incredibly high energy prices which cannot be passed on to the consumers the states must come in,” European Investment Bank President Werner Hoyer told Bloomberg Television on Tuesday. “This is probably something we’ll see for a while.”
Uniper, the biggest German buyer of Russian natural gas, confirmed earlier in the day that it’s finalizing a package that would include an 8 billion-euro ($8 billion) capital increase, subscribed entirely by the government. Berlin will also buy the shares of its main shareholder, Finland’s Fortum Oyj.
Germany has been under pressure to act as the company’s failure could ripple through Europe’s largest economy — and also threaten fuel supplies. Russian President Vladimir Putin has slashed energy flows in retaliation for sanctions.
Hoyer said what’s happening makes it even more vital for Europe to push ahead with its green transition. Meanwhile, it’s “well on track to mitigate the situation” by lowering demand and diversifying energy sources.
“We need to continue with resolve on the energy transformation — in Europe and in the world,” he said. “Otherwise we leave the weapon the hand of Mr. Putin.”
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