The European Commission gave its go-ahead on Tuesday for Germany to undertake a recapitalization of up to 34,500 million euros of the company Uniper, the country’s largest gas supplier, which is experiencing financial difficulties due to the Russian war against Ukraine, after concluding that the operation respects the Community competition rules.

“The Commission concluded that the recapitalization measure will contribute to avoiding serious disturbances in the German natural gas market: the measure seeks to restore Uniper’s balance sheet and liquidity in the exceptional situation caused by Russia’s war of aggression against Ukraine, while maintaining the necessary safeguards to limit distortions of competition,” the Community Executive said in a statement.

Brussels recalled that Uniper provides electricity or gas to almost half of the 900 German municipalities, it is the fourth gas storage company, with around 25% of total German reserves, and the war against Ukraine had caused serious losses and its viability has been put at risk, so the state bailout seeks to enable it to continue serving consumers.

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