Germany's recent bailout of natural gas giant Uniper SE is unlikely to be the last energy-sector rescue in Europe, given the ongoing crisis sparked by Russia's war in Ukraine. With tensions remaining high and no end in sight to the conflict, other energy companies in the region could soon find themselves in need of similar assistance.
According to European Investment Bank President Werner Hoyer, high energy prices could lead to more state intervention. Hoyer told Bloomberg Television that energy prices are "incredibly high" and that this is likely to continue for a while.
Uniper, the largest German buyer of Russian natural gas, has confirmed that it is finalizing a package that would include an 8 billion-euro ($8 billion) capital increase, to be subscribed entirely by the German government. The government will also purchase the shares of Uniper's main shareholder, Finland's Fortum Oyj.
Germany is facing pressure to take action in response to the failure of a Russian energy company. This could have ripple effects through Europe's largest economy, and also threaten fuel supplies. Russian President Vladimir Putin has slashed energy flows in retaliation for sanctions.
Hoyer said that the current situation makes it even more important for Europe to continue with its transition to green energy. He added that Europe is "well on track to mitigate the situation" by reducing demand and diversifying its energy sources.
We must remain committed to the energy transition - in Europe and globally - in order to prevent Vladimir Putin from gaining an advantage.
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