The Swiss-based company behind the Nord Stream 2 pipeline has filed for bankruptcy and fired all 106 employees, a local official confirmed to Swiss radio station SRF.
Why it matters: Long seen as a Kremlin influence project that will increase Europe’s energy dependence on Russia, Nord Stream 2 was one of the first targets of a wave of Western sanctions sparked by Vladimir Putin’s invasion of Ukraine.
- German Chancellor Olaf Scholz said certification of the $ 11 billion natural gas pipeline would be suspended last Tuesday, a day after Putin ordered Russian troops to enter eastern Ukraine for a “peacekeeping” mission. The pipeline is completely built, but the gas has not yet started to flow.
- The United States followed the lifting of sanctions on Nord Stream 2 AG and its corporate employees, possibly dealing a deadly blow to a project that caused major headaches for President Biden and the transatlantic alliance.
What are they saying: “Following the recent geopolitical events that led to US sanctions on Nord Stream 2 AG, the company had to terminate its contracts with employees. We are very sorry for this development, “said Nord Stream 2 AG, a wholly owned subsidiary of Russia’s Gazprom. Reuters in a statement.
Between the lines: Although the West and private companies have moved toward complete isolation of Russia over its unprovoked attack on Ukraine, former German Chancellor Gerhard Schroeder, chairman of Nord Stream 2 AG, has yet to sever ties with Russia’s energy giants.
- Members of his office staff left in protest, according to Politico.
Go deeper: Putin’s war could herald a new era of energy