Nord Stream 2 management company to launch bankruptcy proceedings

Swiss company Nord Stream 2 AG, acting as an operator of Nord Stream 2, is going to resort to insolvency proceedings.  This is connected with the sanctions that were previously imposed on the enterprise in connection with the geopolitical situation around Ukraine.  It is known that at the moment the company has already begun staff reductions.

The intention to initiate bankruptcy was reported by Reuters, citing two anonymous sources at once. According to the media outlet, they wanted to remain anonymous due to the confidentiality of negotiations on potential insolvency.

It is reported that Nord Stream 2 AG is currently cooperating with a financial advisor on a number of its obligations and may initiate a bankruptcy case in a Swiss court as early as this week.

Nord Stream 2 AG was created by Gazprom to implement a project to double the capacity for pumping gas from Russia to Germany. The cost of the project, which is currently almost completed, amounted to $11 billion. The pipeline with a length of over 1,000 kilometers has been completed and, in order to start operation, it needed to complete the certification procedure from the German side. However, last week Germany suspended work in this area due to the aggravation of the situation with Ukraine.

At the moment, it is known that Nord Stream 2 AG resorted to the termination of contracts with workers, as well as with all the staff (about 140 people).