Germany to nationalize gas giant Uniper in historic bailout

The German government is planning to inject about 8 billion euros ($8 billion) into Uniper SE as part of a historic agreement to nationalize the gas giant and stave off a collapse of the country’s energy sector.

Uniper confirmed on Tuesday it is in final discussions with the government over a package that would include an 8 billion-euro capital increase, subscribed entirely by the government. Berlin will also buy the shares of its main shareholder, Finland’s Fortum Oyj.

Uniper, the biggest German buyer of Russian gas, is at the epicenter of the crisis sparked by Moscow’s moves to cut energy flows in retaliation for war-related sanctions. The government was under pressure to act as the company’s failure could ripple through Europe’s largest economy — and also threaten fuel supplies.