Germany nationalizes energy giant Uniper as Russia squeezes gas supplies

In an effort to preserve the sector in the context of a global energy crisis, the German government approved the nationalisation of utility Uniper on Wednesday.

The state will pay 0.5 billion euros to acquire Fortum's 56% ownership after agreeing in July to bail out

the large gas importer with a 15 billion euro ($14.95 billion) rescue agreement. The German government would eventually hold about 98.5% of Uniper.

New measures to address the problem have been agreed upon, according to a statement released by Fortum on Wednesday morning. 

"Since the stabilisation package for Uniper was agreed upon in July, Uniper's condition has further deteriorated swiftly and dramatically," the statement read.

The largest gas importer in Germany, Uniper, has been put under pressure as a result of significantly reduced gas imports from Russia, which have driven up costs.

The Nord Stream 1 pipeline was used to transport gas from Russia's state-owned energy behemoth, Gazprom, to Europe earlier this month.

Uniper CEO Klaus-Dieter Maubach told CNBC that this action would make the company's problems worse.