Uniper's situation has looked increasingly vulnerable following the closure of the Nord Stream 1 pipeline. Previously, Germany's largest importer of natural gas said soaring energy prices had hit the company hard.
Germany is nearing a provisional agreement to nationalize energy company Uniper amid the ongoing fallout from Russia's invasion of Ukraine, according to reports released by Bloomberg.
A spokesperson for the company on Tuesday said all parties involved in discussions are looking at a possible capital increase that would lead to the German government taking a significant majority stake in the ailing gas importer.
Consequences of Russia's invasion of Ukraine
Uniper's situation has looked increasingly vulnerable in recent weeks.
At the beginning of this month, Russian energy giant Gazprom said gas supplies to Western Europe via the Nord Stream 1 pipeline have completely stopped due to equipment issues., giving no time frame on when it would resume activities.
With winter fast-approaching, the ailing energy importer burned through its cash reserves sourcing gas on the expensive spot market after Moscow slashed flows to Germany, triggering a rescue package with Berlin agreed in July.
Last month, Uniper said soaring energy prices and a threat by Russia to cut gas supplies had hit the Düsseldorf-based company hard. It also warned a though winter lies ahead.
In July, German Chancellor Olaf Scholz said Uniper was in "big trouble" owing to the worsening energy crisis.
This article originally appeared on Reuters And DW, Edited and Redistributed by Intels News
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