Wintershall loses billion
First Nord Stream 2 financier writes off pipeline
03/02/2022, 18:02
Nord Stream 2 AG is probably in serious financial difficulties and has laid off all employees, but has not yet filed for bankruptcy. Co-financier Wintershall writes off the billion euros anyway and stops all payments to Russia. Germany’s largest importer of Russian gas behaves differently.
The oil and gas group Wintershall Dea is the first party to completely write off the Nord Stream 2 Baltic Sea pipeline project, which is about to come to an end. The Executive Board has decided to write off Wintershall Dea’s share of the financing of around one billion euros, the company announced. The pipeline, which costs around 9.5 billion euros, belongs to the Russian gas company Gazprom, but Wintershall Dea, the supplier Uniper, the Austrian OMV, the French Engie and Shell took over half of the financing.
After Russia invaded Ukraine, the pipeline was put on hold. The Switzerland-based project company Nord Stream 2 AG has already laid off all of its employees, but contradicted reports that it had already filed for bankruptcy. “We do not confirm media reports that Nord Stream 2 has filed for bankruptcy,” the project company said. “The company only informed the local authorities that it had to terminate contracts with employees after US sanctions were imposed on the company.”
The government councilor of the canton of Zug, Silvia Thalmann-Gut, also stated that no bankruptcy had been initiated. “We are aware that Nord Stream 2 is struggling with enormous payment difficulties. The company has not yet filed for bankruptcy with the Zug Commercial Register.” According to Reuters information, that could happen this week.
Wintershall Dea, in which the chemical company BASF holds 67 percent, also wants to stop all new oil and gas production projects in Russia. Payments to Russia would be stopped immediately. However, the company is sticking to the existing natural gas production projects Yuzhno Russkoye and Achimov in Siberia.
“As of today, gas is flowing as per contract”
Meanwhile, another Nord Stream 2 participant is aiming to continue its own business in Russia: Uniper, Germany’s largest importer of Russian natural gas. A spokesman for the energy company told the “Rheinische Post”: “Uniper strongly condemns Russia’s invasion of Ukraine, which is a violation of international law and the principles of the UN Charter. War should never be the solution to a problem.”
At the same time, as an energy company, you have to continue to live up to your responsibility to customers “by helping to secure the supply of gas and electricity in Germany and Europe”. You also have a responsibility to your employees. “We will therefore continue to conduct our business in Russia responsibly. We will comply with existing contracts for the supply of electricity and gas in Russia and Europe, for which Russian gas imports play a key role.”
Almost 5,000 of the approximately 11,500 Uniper employees work at the Russian subsidiary Unipro, in which Uniper holds around 84 percent. Uniper itself is majority owned by the Finnish Fortum Group. Uniper pledged its support to the federal government: “Western governments can of course rely on our support.” With its expertise in gas supply, trading and storage, Uniper is part of the solution.
“We have already taken measures to ensure a diversified and secure energy supply, which will become even more robust in the future,” the “Rheinische Post” continued. On the question of Russian gas deliveries to Germany, the Uniper spokesman for the German Press Agency said: “As of today, gas is flowing in accordance with the contract.”