Amid sanctions, Nord Stream 2 firm may go bust

STORY: The company behind the Nord Stream 2 gas pipeline may file for insolvency amid international sanctions.

That’s according to two Reuters sources.

Nord Stream 2 AG was sanctioned by the U.S. last week ahead of Russia’s invasion of Ukraine.

The firm is based in Switzerland and owned by Russian gas giant Gazprom.

It was supposed to double the capacity for pumping Russian gas to Germany.

But the project has been politically contentious since it was conceived.

Washington says it would make western Europe too dependent on Moscow for energy supplies.

Germany has now halted approval for the project.

The two Reuters sources say Nord Stream 2 AG could begin insolvency proceedings in Switzerland as soon as this week.

Gazprom paid half of the cost of the $11 billion project.

The rest was covered by western oil firms including Shell and Austria’s OMV.

Workers on the project are having their contracts terminated.

It’s not clear how the pipeline will be maintained.