Germany bails out Uniper, a crucial gas provider squeezed by Russia.
As part of the rescue, the German government expanded the credit it granted Uniper to 9 billion euros ($9.2 billion), from €2 billion before, and offered up to €8 billion in equity. The government also announced that it would allow energy suppliers to begin passing on increased costs to private and business consumers to spread the burden as broadly as possible beginning Oct. 1.

“We will do everything that matters, today and for as long as necessary,” Chancellor Olaf Scholz told reporters in Berlin, announcing the bailout as part of a wider package of measures to combat the energy crisis.

“We will make sure that nobody is overwhelmed in the current situation,” Mr. Scholz said.

Uniper’s share price veered wildly after the announcement, jumping at first but later crashing as details of the rescue sank in. The company has lost about 80 percent of its value this year, making it worth less than €3 billion, a sum far overshadowed by the money the government deemed necessary to bail it out.

The Berlin government deliberately made the terms of the deal tough on shareholders and the company, based on a model that it used to keep the German airline Lufthansa afloat two years ago. It will require Uniper to use its own capital and operating profit before the government support will kick in.