View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
  1. News
March 2, 2022updated 23 Mar 2022 12:03pm

Reports of Nord Stream 2 AG filing for bankruptcy after sanctions

The Swiss-based company is owned by Gazprom International Projects, a unit of the Russian state-owned gas major Gazprom.

Understand the impact of the Ukraine conflict from a cross-sector perspective with the Global Data Executive Briefing: Ukraine Conflict


Nord Stream 2 AG, operator of the $11bn Nord Stream 2 gas pipeline project, was reported to have filed for bankruptcy after facing Western sanctions by Swiss radio broadcaster SRF, citing a local official.

This claim was rejected by Nord Stream AG however, which wrote in emailed comments to Reuters: “We do not confirm the media reports that Nord Stream 2 has filed for bankruptcy.

“The company only informed the local authorities that the company had to terminate contracts with employees following the imposition of U.S. sanctions on the company.”

The Swiss-based company is owned by Gazprom International Projects, a unit of the Russian state-owned gas major Gazprom. Gazprom’s European partners in the Nord Stream 2 project include Uniper, Shell, Wintershall Dea, Engie, and OMV.

The latest statement by Nord Stream AG comes as it looks to settle claims ahead of a US sanction deadline that would stop other entities in dealing with the company, reported Reuters.

Last week, German Chancellor Olaf Scholz suspended the certification process of the $11bn natural gas pipeline as a result of the escalating Ukraine crisis. This decision comes after Ukrainian President Volodymyr Zelensky’s statement earlier this month calling for the pipeline to be suspended “immediately”. 

Nord Stream 2 AG was also hit with sanctions by the US last week, citing Russia’s military actions on Ukraine.

The 1,230km pipeline, which was due to start commercial operations, runs from Russia to Germany.

As a result of the US sanctions Nord Stream 2 AG has also ended contracts with its employees.

Reuters reported Nord Stream 2 AG as saying in an emailed statement: “Following the recent geopolitical developments leading to the imposition of US sanctions on Nord Stream 2 AG, the company had to terminate contracts with employees. We very much regret this development.”

Amid Russia’s invasion on Ukraine, Italy has deferred its financing share for the $21bn Arctic LNG 2 project, which is led by Russian gas producer Novatek, reported Reuters, citing two sources close to the matter.

The Arctic LNG 2 was planned for commissioning in 2023. It is designed to have a full production capacity of nearly 20 million tonnes of liquefied natural gas per year. Italy’s share of financing is estimated at $561m for the project, according to sources.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Offshore Technology