5 European Stocks to Sell Before Recession Starts

2. Uniper SE (OTC:UNPRF)

Uniper SE (OTC:UNPRF) is a German energy company.

Uniper SE (OTC:UNPRF) has found itself in the middle of a severe liquidity crunch following Russia’s decision to curtail deliveries of natural gas. The move follows the imposition of European sanctions on Russia following the start of its conflict with Ukraine. Uniper SE’s (OTC:UNPRF) was heavily reliant on cheap Russian natural gas which has exposed the company to supply cuts.

On July 8, Uniper SE (OTC:UNPRF) requested a government bailout which is expected to be valued at €10 billion. Earlier, the company had already applied for the extension of a €2 billion credit line from German lender, Kfw Group. To avoid purchasing fuel at higher spot prices, Uniper SE (OTC:UNPRF) has started using the natural gas it had stored for the winters. Uniper SE (OTC:UNPRF) can be seen as lacking the strength to sustain its operations in the long run without solid government funding.