Uniper - the German subsidiary of majority-state-owned Finnish energy firm Fortum - has reported an IFRS (International Financial Reporting Standards) net loss of more than 12 billion euros for the first half of 2022.

In a press statement released on Wednesday, the company said that the collapse in earnings was mainly due to the effects of a decline in gas exports from Russia, accounting for more than half of the losses.

In addition, the cancellation of the Nord Stream 2 gas pipeline has resulted in a loss of almost 3 billion euros for Uniper.

"To fulfill its customer contracts, Uniper has been forced to buy gas on spot market at high prices," the company said.

Uniper added that this year's half-year results are significantly down on the company's performance during 2021.

In July, Fortum agreed on a deal with the German government in principle which would see Germany bailing out its subsidiary.

"This will prevent a chain reaction that would do much more damage. Our top priority now is to swiftly implement the stabilization package," Uniper CEO Klaus-Dieter Maubach wrote in Wednesday's press release.