Germany's Uniper Says Exploring Legal Options for Nord Stream 2 Loan Recovery

MOSCOW, (Sputnik) - German energy company Uniper is conducting a legal analysis of the possibility to return part or all of the loans for the Nord Stream 2 gas pipeline project, the company said on Wednesday.

"In the first quarter of 2022, Uniper has recorded a full impairment on the book value of its loans as well as the accrued interest towards Nord Stream 2 AG [Nord Stream 2 operator]," the company said in a report. "A legal analysis is ongoing to see if nevertheless it is possible to recover parts or all of the loans provided which would represent a major individual chance that would improve the assessment class of the legal chances category to major."

Nord Stream 2 is a gas pipeline project with a capacity to carry 55 billion cubic meters per year, enabling gas transit from Russia across the Baltic Sea to Germany. It was implemented by Nord Stream 2 AG with the only shareholder, Russian energy giant Gazprom. The pipeline's construction lasted for three years and was completed in 2021.

The financial investors of Nord Stream 2 were five European companies — Royal Dutch Shell, OMV, Engie, Uniper and Wintershall —  which have pledged to fund half the cost of the project, up to 950 million euros ($967 million) each, and said in 2021 that funding has been met.

However, in response to the special operation in Ukraine, Western countries imposed a series of sanctions on Russia, with Germany halting certification of the ready-to-operate Nord Stream 2.

In May 2022, the Swiss court of the canton of Zug suspended the bankruptcy proceedings of Nord Stream 2 AG until September 10, granting the pipeline operator a temporary moratorium on payments to creditors for four months.