Mecklenburg-Vorpommern Economy

German foundation withdraws from Nord Stream 2 project

A German public-law foundation set up to help Russia’s Gazprom complete the Nord Stream 2 gas pipeline plans to withdraw from the project.

This is acc Reutersreports Ukrinform.

The foundation “wants to pay 12 million euros ($12.10 million) to settle its debt to subsidiary Nord Stream 2 AG,” the report said.

The foundation had not yet clarified whether sanctions laws would prevent it from sending the money. Established in 2021 with a €20 million donation from Nord Stream 2 AG and €200,000 from the state government of Mecklenburg-Vorpommern, the foundation had a commercial arm to purchase and its own assets needed to complete the project.

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Erwin Sellering, the foundation’s head, said his institution wants to cut all ties to Nord Stream 2 after paying €12 million in debt to Switzerland-based Nord Stream 2 AG, which completed the pipeline under the Baltic Sea last year have.

Around 10 million euros of the total amount is attributable to proceeds from the sale of machines, devices and materials and the purchases that Nord Stream 2 once financed.

In addition, the foundation is paying back 2 million euros to the company, which it had accepted as an advance.

In March 2022, Nord Stream 2 AG became insolvent.