Germany signs deal to nationalise gas giant Uniper: Finnish owner

HELSINKI, Sept 21 (AFP): The German government has signed a deal to nationalise troubled gas giant Uniper, the company's Finnish owner said Wednesday, as the energy sector reels from the fallout of Russia's war in Ukraine.

Fortum said in a statement that Berlin will inject eight billion euros ($8 billion) in cash in Uniper and buy the Finnish firm's shares for 500 million euros, giving Germany a 98.5 percent stake in the gas company.

"Under the current circumstances in the European energy markets and recognising the severity of Uniper's situation, the divestment of Uniper is the right step to take, not only for Uniper but also for Fortum," said Fortum chief executive Markus Rauramo.

"The role of gas in Europe has fundamentally changed since Russia attacked Ukraine, and so has the outlook for a gas-heavy portfolio. As a result, the business case for an integrated group is no longer viable," Rauramo said in the statement.

One of the biggest importers of Russian gas, Uniper has been squeezed as Moscow has reduced supplies to the continent in the wake of its invasion of Ukraine in February.