July 11, 2022: -On Friday, embattled German gas giant Uniper offered a bailout application for the government’s support after being into extreme financial distress, Finnish majority owner Fortum stated.

Uniper was the initial German energy company to sound the alarm more than soaring energy bills because of reduced supplies of Russian gas.

It has been in discussions with the German state about a potential bailout in the current weeks.

“We welcome that the German Parliament has approved a ‘toolbox’ which will permit sudden relief to the effects of the gas supply crisis,” said Markus Rauramo, the CEO and President of Fortum, which refers to adopted German energy legislation.

“Next, we look forward to the German government to begin promptly implementing these tools to stabilize the situation in the energy industry and, particularly at Uniper, as we continue talks on a long-term solution,” he added.

Germany’s biggest gas importer, Fortum, said Uniper had been hit hardest by reduced Russian gas flows. The company has received only 40% of Russian contracted volumes and has been forced to source the replacement volumes at higher prices.

Fortum says that it was engaged in “constructive talks” with the German government about stabilizing Uniper’s business risks and financial position.

No decisions had been made on any solution, it added.

Shares of Uniper increase more than 2.4% on Friday afternoon. The Frankfurt-listed stock price is collapsing by over 73% year-to-date.