A Lifeline for Nord Stream 2: The Swiss Court's Green Light for New Investors
Seeking Financiers for Nord Stream 2 Project
In the financial straits, the operator of the controversial Nord Stream 2 pipeline has found respite. A court in the canton of Zug, Switzerland, has given its seal of approval for the search for fresh investors for Nord Stream 2 AG. The court's ruling can be challenged, it stated, but no more details were disclosed.
The Nord Stream 2 pipeline, designed to transport natural gas from Russia to Germany, has been at a standstill since it was completed but never activated. Following Russia's attack on Ukraine in February 2022, the German government called off the project. In September 2022, one of the two strings of Nord Stream 2 and both strings of Nord Stream 1 suffered sabotage, raising questions about the pipeline's future.
Amidst the speculation, whispers of US investments have surfaced. Stephen P. Lynch, a wealthy US businessman and a staunch supporter of former US President Donald Trump, has been mentioned as a potential investor. It's been suggested that his involvement could be part of an agreement between the US and Russia aimed at resolving the Ukraine conflict. Russian Foreign Minister Sergei Lavrov confirmed these discussions in March, stating, "Nord Stream is being discussed."
Insights
- Investment Proposals: If the deal goes through, US investors would acquire the pipeline and comply with EU regulations by demonstrating separation of ownership and supply. However, any transaction would have to be at arm's length, with no Russian involvement[3].
- Sanctions and Policy Discussions: The White House is debating lifting sanctions on Nord Stream 2 as part of broader peace negotiations with Russia. This could open up possibilities for new investors, but it would require expansive diplomatic and regulatory changes[2].
- EU Regulations: The 2024 Gas Directive imposes stringent pipeline ownership requirements, which could pose challenges for new investors unless they meet EU standards for supply security and independence from gas suppliers[3].
- Market Context: The European Union has been moving away from Russian gas, casting doubt over the pipeline's viability. However, if the sanctions are lifted and the EU agrees to accept Russian gas again, it could provide a financial boost to Moscow[1][2][4].
Sources: ntv.de, lar/dpa
- Nord Stream
- Energy Supply
- Russia
- Switzerland
- Natural Gas
- Justice
- Investment
- US-Russia Relations
- Ukraine Conflict
- EU Regulations
- The court in Switzerland's canton of Zug has reportedly allowed Nord Stream 2 AG to seek new investors, which, although appealable, could open the door for US investors to acquire the pipeline and comply with EU regulations.
- Amidst speculation about the Nord Stream 2 pipeline's future, US businessman Stephen P. Lynch has been mentioned as a potential investor, with his involvement possibly part of a US-Russia agreement aimed at resolving the Ukraine conflict.
- The 2024 Gas Directive, imposing stringent pipeline ownership requirements, could pose challenges for potential investors unless they meet EU standards for supply security and independence from gas suppliers.
- The prospect of US investments in the Nord Stream 2 pipeline, subject to arm's length transactions and possible sanctions lifts, could provide a financial boost to Russia if the European Union agrees to accept Russian gas again.
