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Nord Stream 2 owner considers insolvency after sanctions

01 March 2022 22:22 (UTC +04:00)

The Swiss-based company which built the Nord Stream 2 gas pipeline from Russia to Germany is considering filing for insolvency, two sources familiar with the situation said, as it attempts to settle claims ahead of a U.S. sanction deadline for other entities to stop dealings with it, APA reports quoting Reuters.

The United States sanctioned Nord Stream 2 AG last week after Russia recognised two breakaway regions in eastern Ukraine prior to its invasion of the country, which has prompted a wave of economic sanctions by the West.

Nord Stream 2 AG, which is registered in Switzerland and owned by Russian state-owned gas giant Gazprom , last year completed the $11 billion project which was designed to double the capacity to pump gas from Russia to Germany.

The two sources, who spoke on condition of anonymity because the talks about a potential insolvency are confidential, said that Nord Stream 2 AG has been working with a financial adviser on clearing some of its liabilities and could formally begin insolvency proceedings in a Swiss court as soon as this week.