Germany’s Uniper joins friends in writing down mortgage to Nord Stream 2

The emblem of German vitality utility firm Uniper SE is pictured within the firm’s headquarters in Duesseldorf, Germany, March 10, 2020. REUTERS/Thilo Schmuelgen

FRANKFURT, March 7 (Reuters) – German utility Uniper (UN01.DE)on Monday turned the newest agency to jot down down its monetary publicity to the suspended Nord Stream 2 pipeline venture and unveiled a gross sales course of for its Russian subsidiary in response to Moscow’s invasion of Ukraine.

Berlin has halted the Nord Stream 2 Baltic Sea pipeline venture, which might have doubled Russian fuel flows to Germany, following Russia’s invasion of Ukraine, which Moscow calls a “particular operation”. learn extra

Uniper stated it might totally impair its 987 million euro ($1.07 billion) mortgage to Nord Stream 2, becoming a member of pipeline co-funders Wintershall Dea (WINT.UL), Shell (SHEL.L), OMV (OMVV.VI) which have taken comparable steps in latest weeks.

Uniper, through which Finland’s Fortum (FORTUM.HE) owns 78%, had to this point held out taking extra drastic measures in response to the Ukraine disaster as a result of its massive publicity to Russia and the truth that it one of many prime importers of Russian fuel.

“Particularly in gentle of our long-standing enterprise relations with Russia, we’re each shocked and moved by these unprecedented developments,” Uniper Chief Government Klaus-Dieter Maubach stated.

The group stated its 2022 outlook wouldn’t be affected.

Uniper stated it had initiated a gross sales course of for its Russian division Unipro (UPRO.MM), through which it holds a 83.7% stake, on the finish of final yr, including it has been placed on maintain given latest occasions however can be resumed as quickly as doable.

Uniper is not going to make any new investments in Russia or enter into new long-term provide contracts for pure fuel within the nation, it stated. Nonetheless, it can proceed to fulfil its current contracts.

The corporate additionally stated it has determined to not lengthen its Russian coal provide contracts, which run till 2022, and that it might resume plans for a liquefied pure fuel terminal in Wilhelmshaven in a bid to diversify Germany’s vitality provide.

Uniper may also search to increase an undrawn 2 billion euro credit score line from German state lender KfW (KFW.UL) that expires on the finish of April.

($1 = 0.9206 euros)

Reporting by Christoph Steitz and Victoria Waldersee; Modifying by Chris Reese and Marguerita Choy

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