Ukraine war pushes Uniper, one of Europe's biggest utility companies, to the brink

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France Dernières Nouvelles,France Actualités

Uniper, which is Germany's biggest buyer of Russian gas, issued a profits warning last week, withdrew its financial forecasts for the year and said it was in talks with the German government about a possible bail-out.

The company's share price, which has fallen by 63% since the beginning of the year, certainly appears to be pricing in that eventuality.

Uniper has been forced into this position by the sudden surge in gas prices. Most well-run energy companies seek to buy gas in advance in order to have security of supply. But Russia's recent decision to reduce the amount of gas it pipes to Germany to just 40% of regular levels has forced the company to buy gas on the 'spot' market.

Its problems have been compounded by the fact that it has not been allowed to pass on these extra costs to customers - despite the fact that, under Germany's national gas emergency plan, it would have expected to., under which suppliers are usually allowed to pass on higher costs to consumers. Berlin has clearly calculated that the cost of providing Uniper with financial support will be less painful than the hit to the economy that would follow if households and businesses were ordered to stump up more for their energy.

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You need to stop hanging noodles on your ears. The economy is on the brink because the country's leadership decided to make money on the war. And ordinary people are tormented by listening to beautiful slogans about 'Help and Salvation.'

Natos war on Ukraine has sparked a spike in oil and gas prices and threatens to tip a number of European economies heavily dependent on Russian gas into recession.

France Dernières Nouvelles, France Actualités