Germany's Uniper to Record Full Impairment Loss on Nord Stream 2 Loan

BERLIN (Reuters) - German utility Uniper said it will record a full impairment loss on its loan to Nord Stream 2 totaling 987 million euros ($1.07 billion).

This value resulted from the loans originally provided to Nord Stream 2 as well as current accrued interest, said Uniper, which is majority owned by Finland's Fortum, adding that its outlook remained unchanged despite the decision.

The divestment process for Uniper's Russian subsidiary Unipro, in which Uniper holds 83.73% and which it had begun divesting at the end of last year, will be resumed when possible, the statement added.

Berlin has halted the Nord Stream 2 Baltic Sea pipeline project, which would have doubled Russian gas flows to Germany, following Russia's invasion of Ukraine, which Moscow calls a "special operation". 

Uniper will not make any new investments in Russia or enter new long-term supply contracts for natural gas in the country, it said. Still, it will continue to fulfil its existing contracts.

However, the company has decided not to extend its Russian coal supply contracts, which run until 2022.

"Two things need to be done now: Maintain the existing energy flows, and at the same time find ways and means to make the gas supply for Germany and Europe more diverse," CEO Klaus-Dieter Maubach said in a statement, which highlighted Europe's and especially Germany's dependence on Russia for gas.

($1 = 0.9206 euros)


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