The Swiss-based company behind the Nord Stream 2 pipeline has filed for bankruptcy and fired all 106 of its employees, a local official confirmed to Swiss radio broadcaster SRF.
Why it matters: Long viewed as a Kremlin influence project that would increase Europe’s energy dependence on Russia, Nord Stream 2 was one of the first targets of the flurry of Western sanctions triggered by Vladimir Putin’s invasion of Ukraine.
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German Chancellor Olaf Scholz said the certification of the $11 billion natural gas pipeline would be suspended last Tuesday, a day after Putin ordered Russian troops into eastern Ukraine for a “peacekeeping” mission. The pipeline is fully constructed, but gas had not yet started flowing.
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The U.S. followed up by rescinding sanctions waivers on Nord Stream 2 AG and its corporate officers, dealing what was likely the death blow to a project that had caused major headaches for President Biden and the trans-Atlantic alliance.
What they’re saying: “Following the recent geopolitical developments leading to the imposition of U.S. sanctions on Nord Stream 2 AG, the company had to terminate contracts with employees. We very much regret this development,” Nord Stream 2 AG — a wholly-owned subsidiary of Russia’s Gazprom — told Reuters in a statement.
Between the lines: Even as the West and private companies have moved to fully isolate Russia over its unprovoked attack on Ukraine, former German Chancellor Gerhard Schröder — the chairman of the board of Nord Stream 2 AG — has yet to cut his lucrative ties with Russian energy giants.
Go deeper: Putin’s war may herald a new energy era
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