Germany mulls aid of up to 2 bln euros for German gas importer VNG -Handelsblatt

The German national flag flies in Berlin, Germany, April 5, 2022. REUTERS/Lisi Niesner

BERLIN, July 7 (Reuters) - The German government is considering providing aid of up to two billion euros ($2.03 billion) to German gas importer VNG in case of a gas emergency due to falling Russian gas supplies, Handelsblatt reported on Thursday citing financial circles.

VNG, which is majority-owned by German regional utility EnBW (EBKG.DE), did not immediately respond to requests for comment.

The economy and finance ministries were not immediately available for comment either.

Register now for FREE unlimited access to Reuters.com

In March, VNG said it had applied with state-owned KfW bank for a back-up credit line as a precautionary measure to cover margin payments tied to hedges for power and gas sales - known in the industry as margin calls. read more

The news comes days after German utility Uniper (UN01.DE) raised the alarm over scarce gas and soaring prices, saying it was in talks about a possible government bailout.

Earlier this week, the German cabinet approved a law to give the government the power to bail out utilities if they falter under rising energy prices as Russian gas imports decline. read more

($1 = 0.9850 euros)

Register now for FREE unlimited access to Reuters.com
Reporting by Riham Alkousaa; Editing by Tom Sims, Alexandra Hudson

Our Standards: The Thomson Reuters Trust Principles.