Nord Stream 2, a 1,200 kilometer (745 mile) pipeline under the Baltic Sea, built transport Russian gas to Europe plans to file for insolvency and laid off personnel following the sanctions imposed on Russia over Ukraine invasiontwo familiar sources with says the situation, as she attempts to settle upcoming claims of a sanction deadline by the United States for other entities to stop transactions with this.
The United States has sanctioned Nord Stream 2 AG last a week after Russia recognized two breakaway regions in eastern Ukraine before its invasion of the country, which caused a vague of economic sanctions by the West.
Nord Stream 2 AG, which is registered in Switzerland and owned by the Russian gas giant Gazprom, last year completed the $11 billion project what was designed for double the ability to pump gas from Russia to Germany.
Both sources, who spoke on state of anonymity because discussions of potential insolvency are confidential, said Nord Stream 2 AG worked with a financial to advise on clean some of its responsibilities and could formally begin insolvency proceedings in a Swiss court like soon like this week.
Nord Stream 2 AG has no comment on possible insolvency. Gazprom declined for comment.
Swiss newspaper Blick’s website posted a video interview with Silvia Thalman, director of economic affairs in County of Zug, where Nord Stream 2 AG is based.
In an apparent confirmation of Nord Stream 2 insolvency When asked about the company’s job cuts, Thalmann said: “It’s not a mass layoff (of Staff). A collective dismissal only takes place when the company continues to exist. In this case, however, it is a bankruptcy.”
She could not be reached for immediate comment outside business hours. Nord Stream 2 AG was also not immediately available by telephone.
The pipeline had not started commercial operations car he was awaiting certification in Germany, which last week put this process on stand as one result of the worsening of the Ukrainian crisis.
the bureau from the US Treasury Department of Foreign Assets Control has issued a decree on February 23 allowing “the wind down of transactions involving Nord Stream 2 AG” or “any entity in owned by Nord Stream 2 AG, directly or indirectly, an interest of 50% or more” by March 2.
Gazprom paid half the cost of building NordStream 2, with the rest of the 11 billion dollar pipeline project financed by the British oil and gas major Shell, the Austrian OMV, the French Engie and the Germans Uniper and Wintershall DEA.
Shell, Engie and Wintershall DEA did not immediately respond to requests for comment. OMV declined for comment.
A spokesperson for Uniper said the company does not currently have such information whenon asks him about a possible filing for bankruptcy by Nord Stream 2 AG.
It was unclear whether all entities related to Nord Stream 2 AG would be shut down Where how Gazprom plans proceed with the pipeline maintenance.
Swiss Economy Minister Guy Parmelin said in a meeting with Swiss radio service RTS on Monday that everyone personnel from Nord Stream, more more than 140 employees, who work for the company in Swiss city of Zug had been fired.
Job cuts have been confirmed on Tuesday by Nord Stream 2 AG, which said in statement: “Following recent geopolitical developments leading to taxation of US sanctions on Nord Stream 2 AG, the company had to terminate contracts with employees. We regret it very much development.”
Germany, which gets half son gas from Russia, had supported Nord Stream 2 to diversify energy supplies for Europe, but the project faced opposition within the European Union and the United States for increasing the region’s dependence on gas on Russia and allowing Moscow to reduce volumes across Ukraine, for to which he must pay a right of transit.
From Russia invasion of Ukraine last week, several major companies, including oil majors, said they would quit their Russian operations, including Shell, which said it would no longer be involved in Nord Stream 2 among other investments.