Fortum examines all options in energy security talks with Berlin | news
By Dominic Chopping
HELSINKI (Dow Jones) – Finnish energy group Fortum is considering all options to secure Europe’s energy markets as it talks with the German government about stabilizing its subsidiary Uniper SE.
“Given the new geopolitical situation, we are considering all options to ensure the security of supply and the stability of the European energy markets in the long term,” said Markus Rauramo, CEO of Fortum.
Germany’s largest gas importer Uniper asked for state aid last week in view of the sharp rise in gas prices as part of the throttled Russian gas supplies and applied for stabilization measures from the federal government.
No decisions have been made yet, Fortum said. However, a solution for Uniper could halt significant losses due to the likely cut in Russian gas supplies, secure Uniper’s investment grade rating and address the new realities of unreliable gas flows from Russia.
Fortum is majority-owned by the Finnish state, and Finland’s Europe Minister Tytti Tuppurainen traveled to Berlin yesterday to discuss Uniper’s major difficulties with German government officials.
“Various options have been proposed,” Tuppurainen said after Thursday’s talks. “We still have a lot of work ahead of us and have to find a solution in the next few days, but at the latest in the next few weeks.”
In the event of continued gas curbs and further gas price hikes, Uniper’s losses will continue to widen and likely become even more dramatic, Fortum said. The level of losses for Uniper depends largely on the cost-equalization mechanisms that the federal government intends to introduce.
“The key to solving this situation also lies in the hands of Berlin,” said Fortum.
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July 15, 2022 5:10 AM ET (09:10 AM GMT)
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