Moratorium on payments to creditors
On May 10, the cantonal court in Zug halted the bankruptcy proceedings for Nord Stream 2 AG for four months, extending until September 10, 2022, as reported by Interfax and confirmed by the company. Nord Stream 2 AG stated that the applicant had been granted a temporary moratorium on payments to creditors. Transliq AG served as interim administrator during this period.
Sanctions prompted by the Ukraine situation
The Nord Stream 2 offshore gas pipeline, designed to carry 55 billion cubic meters annually, runs from the Slavyanskaya compressor station in the Kingisepp district of the Leningrad region of Russia to the Baltic coast of Germany. Both pipeline lines are completed, filled with gas, and ready for operation. Construction began in 2018 and reached completion in 2021, with a two-year delay largely attributed to sanctions from the United States. Kyiv and its allies opposed the project, viewing Nord Stream 2 as a threat to Ukraine’s gas transit system.
On June 11, 2021, Nord Stream 2 AG requested certification from the German Federal Network Agency. Subsequently, regulators required the creation of a separate German-registered entity to oversee the German section of the project. On February 22, German Chancellor Olaf Scholz announced the suspension of approval after Russia recognized the Donetsk and Lugansk People’s Republics. The following day, U.S. President Joe Biden directed sanctions on the Nord Stream 2 AG operator and related management entities.
The Russian president’s spokesperson expressed the hope that the ban would be temporary and that the Baltic Sea to Germany pipeline would still become operational in the future. Moscow has described Nord Stream 2 as a purely economic project benefiting both Russia and the European Union, with suppliers and buyers sharing interests; any political dimension was denied by the Kremlin. Gazprom remains the primary investor, though European companies including Engie, OMV, Shell, Uniper, and Wintershall Dea contributed substantial shares. Shell subsequently withdrew from the project on February 28.
In the current landscape, analysts note that sanctions have shifted the project’s trajectory, with a blend of corporate and state interests shaping outcomes. Attribution: statements from Kremlin spokespeople and commentary by European partners are cited for context.
Seeking a solution
On April 29, Tino Krupalla, a Bundestag Foreign Policy Committee member and leader of the Alternative for Germany party, argued in favor of launching Nord Stream 2. He suggested Germany should consider the project regardless of exchange rate concerns and noted that such arguments could influence government decisions regarding the pipeline. He warned that sanctions now threaten broader Eurasian trade relations and stressed that divisions on the continent should be avoided.
By late April, Nord Stream 2 AG had sought a halt to arbitration related to the EU gas directive, filed on March 1. On May 5, Gazprom acknowledged that German authorities might approve future operation of Nord Stream 2, with the caveat that if activated, only one line could run at full capacity initially. Commissioning the second offshore line would not be feasible before 2028, the company indicated. Gazprom also signaled a plan to repurpose project capacity to supply the North-West region of Russia, leveraging onshore gas to meet regional needs amid the stalled offshore segment.
Meanwhile in Germany, voices suggest the ongoing conflict in Ukraine has complicated the project’s fate. Officials noted that deliveries from Norway and the Netherlands could be increased through existing partnerships, potentially buffering supply needs as decisions unfold. This perspective reflects a cautious stance on how the Nord Stream 2 asset might be integrated into Russia’s broader gas strategy and European energy supply planning. Attribution: statements from German ministry spokespersons and contemporaneous reporting in news agencies.