Gazprom Board Approves $1.5 Bln Purchase of Nord Stream 2 Pipeline Shares

According to reports, the board of directors of Russia's state-run energy company Gazprom has approved the purchase of additional shares in the Nord Stream 2 gas pipeline project, valued at $1.5 billion.

MOSCOW (Sputnik) – The board of directors of Russia's Gazprom energy company has approved the purchase of additional shares in the Nord Stream 2 gas pipeline project valued at $1.5 billion, due to the increase in company's authorized capital, the company said Monday.

"To determine, based on the market value, the price of 71,250 additional registered shares of Nord Stream AG 2 to be acquired by PJSC Gazprom should total 1.425 billion euros [$1.5 billion]," Gazprom's materials published Monday indicate.

Gazprom will acquire 71,250 of additional registered shares of the Nord Stream 2 AG, priced at 1,000 Swiss francs ($996.61) each with the total nominal value of 71.25 million Swiss francs. Shares are issued and placed by private subscription in connection with the increase in the authorized capital of Nord Stream AG 2, priced at 20,000 euros per share, with the payment during 2017. Gazprom's share in Nord Stream 2 AG will stand at 100 percent.

Nord Stream 2 AG is a project company established for the planning, construction and subsequent operation of the Nord Stream 2 pipeline. The company's headquarters is located in Zug, Switzerland.

The Nord Stream 2 project aims to deliver 55 billion cubic meters of Russian natural gas a year to the European Union across the Baltic Sea to Germany, bypassing Ukraine. The launch of the pipeline is planned for 2018. Gazprom has a shareholder agreement to extend the existing Nord Stream with partner European energy firms.

 

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