The SHTF in Europe this winter. That’s bound to affect the US but how?
Russia has curbed natural gas supplies to Europe amid soaring tensions over its invasion of Ukraine, with the effect of sparking an unprecedented energy crisis across Europe, impacting Germany the most.
The German government’s primary concern is avoiding a ‘Lehman-style’ collapse of its energy industry.
Bloomberg reported, citing people familiar with the matter, that German officials are mulling over increasing their stake in troubled NatGas importer Uniper SE above 50% – there’s also talk about nationalization.
Uniper needs additional support from the German government after tapping into rescue packages worth as much as 20 billion euros ($20 billion), according to one source. Soaring NatGas prices and Russian energy giant Gazprom’s supply cuts via the Nord Stream 1 to Europe have led Uniper to millions of euros per day in losses, which Berlin’s first rescue package for a 30% stake in the utility was in July.