Germany is preparing to nationalize three energy companies

Rising gas prices in Germany, as well as the shutdown of the Nord Stream gas pipeline by Russia’s state-owned Gazprom, have already led to several government bailouts and loans. However, the scale of the problem seems to dictate this new step, not least because there is a risk of collapse of these energy sources if they are not subsidized by the state. According to Klaus-Dieter Mobach, CEO of Uniper, energy will lose about $100 million per day, roughly the same amount in euros, as current operations continue.

Speaking to reporters, German Economy Minister Robert Habeck was asked about this proposal, saying that “things are complicated” and that the government is working on this measure.

In the case of Uniper, the difficulties are due to the fact that Fortum, the current majority shareholder, has made a loan to the German company and there is a possibility of unwillingness to abandon this investment. In the case of VNG, the costs of replacing gas from Russia could reach 1 billion euros, which would be on the part of the state if the operation was carried out.

On the other hand, the nationalization of the SEFE, formerly known as Gazprom Germania, runs the risk of the acquisition money ending up in the hands of Russia, as German law may require compensation to be paid to the previous owner of the company.