Berlin, Germany is to nationalise gas giant Uniper in an effort to secure energy supplies amid the war in Ukraine.
The deal will see the German government take on a 98.5% stake in the firm at a cost of €8.5bn (£7.4bn).
Germany is Europe’s biggest importer of Russian gas, and has been particularly squeezed as Russia has reduced supplies in recent months.
Chief executive Klaus-Dieter Maubach said the deal would help Uniper’s role as “a system-critical energy supplier”.
Before Russian-Ukrainian war, Russia supplied Europe with about 40% of its natural gas, and has responded to Western sanctions by gradually cutting off supplies.
Uniper is the biggest buyer of Russian gas in Germany. In recent months, it has had to replace Russian supplies with alternatives from the open market, where prices have soared, BBC news reported.
Uniper’s Finnish owner Fortum said the company has accumulated close to €8.5bn (£7.4bn) in gas-related losses “and cannot continue to fulfil its role as a critical provider of security of supply as a privately-owned company”.
Source: Oman News Agency