# The German gove

By [PerlaHoffelmey1](https://paragraph.com/@romago) · 2022-07-23

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The German government has stepped in to bail out one of its biggest [energy companies](https://edition.cnn.com/2022/05/17/energy/europe-russia-gas-payments/index.html) — the latest casualty of Europe's [natural gas crisis.](https://edition.cnn.com/2022/07/20/energy/eu-emergency-gas-plan/index.html)

Gas distributor Uniper will receive up to €15 billion ($15.3 billion) from the government after months of [Russian supply cuts](https://edition.cnn.com/2022/05/31/energy/russia-shell-germany-gas-shut-off/index.html) and soaring spot market prices have brought it to its knees.

Uniper is Germany's largest importer of gas, its Finnish parent company Fortum said in a Friday press release.

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Under the rescue deal, the government has committed to provide €7.7 billion ($7.8 billion) to cover potential future losses, while state-run bank KfW will increase its current credit facility by €7 billion ($7.1 billion).

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The government will also buy a 30% stake Uniper, while Fortum will reduce its stake from 80% to 56%.

"New geopolitical realities have shaken the European energy system to the core, and this determines a new framework for European energy companies," Fortum CEO Markus Rauramo said in the press release.

Rauramo said that further work was needed to make the gas industry sustainable.

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*Originally published on [PerlaHoffelmey1](https://paragraph.com/@romago/the-german-gove)*