The German government has said it will nationalise the country’s biggest gas importer, Uniper, as it battles massive losses from Europe’s energy crunch.

The Finnish company that, until now, had controlled Uniper said Russia’s squeeze on supplies since the invasion of Ukraine meant that the unit had lost €8.5bn (£7.4bn) to date.

The latest state intervention followed a rescue package agreed in July.

The deal will see the German state take a majority stake from Fortum which, itself, is controlled by Finland’s government.

Read more:
Tough choices for Germany as coal power stations return to keep people warm this winter

Financing of €8bn is to be made available to fund its work.

Uniper’s losses have mounted as Russia has cut back natural gas supplies to European countries supporting Ukraine.

EU targets 5% peak electricity demand cut to tackle soaring prices and energy crisis

Global shift away from fossil fuels to renewable energy by 2050 would save £10trn, scientists say

Energy bills capped at £2,500 a year from October, Liz Truss announces

Prices have soared for the fuel needed to heat homes, generate electricity and power factories, raising fears of business closures, rationing and a recession as the weather turns cold.

Some factories in Germany are already operating below capacity in a bid to save money.

The scramble for supplies saw Berlin take control of three Russian-owned oil refineries last week before an embargo on Russian oil takes effect next year.

Related posts:

Gilbert in bizarre spat with Aberdeen over AssetCo stake Egypt files £600m compensation claim against owner of ship that blocked Suez Canal Electricity deals that might not be as ‘green’ as they seem to be reviewed by government Job vacancies top 1 million as economy rebounds from crisis Glencore invests in £4bn British battery project John Lewis Partnership warns price pressures set to persist, and ‘significant uncertainty’ lies ahead Springsteen is latest to sell back catalogue – but are investors dancing in the dark? Retail sales jump in November with Black Friday boost Rishi Sunak holds meetings with business leaders as Omicron causes COVID slowdown Former CBI chief Fairbairn in race to head Channel 4 Chelsea bidders hit with demand for extra funds to secure £2.5bn charity windfall French building titan Saint-Gobain builds case for Jewson sale