The company Nord Stream 2 AG, belonging to Gazprom, the largest company in Russia, declared bankruptcy after being unable to make payments, assured the Secretary of the Economy of Zug, the Swiss city where it was based.
Silvia Thalmann, head of the Department of Economic Affairs of Zug, confirmed in an interview with SRF that the company had to declare bankruptcy, laying off a staff of 106 people, and the same is expected to happen with other Russian companies whose headquarters are in Zug.
The company Nord Stream 2 AG was in charge of building and putting into operation the gas pipeline that bears the same name, which is part of a great controversy between Russia and Europe.
After Russia recognized the independence of Luhansk and Donetsk, the two rebellious regions of Ukraine prior to the start after the invasion of the country, the United States sanctioned Nord Stream 2 AG, which is owned by the Russian state-owned gas giant, Gazprom.
It was recorded that the currently bankrupt company completed in 2021 a project of $11,000 million dollars, which was designed to double the capacity of pumping gas from Russia to Germany.
“Today we were informed that this company cannot continue. It is not therefore a case of massive dismissals, but rather the company had to deposit the balance. Employees have received notice of termination. Now we are informing you of your rights and obligations. The company is insolvent and therefore cannot ensure a social plan”, Thalmann pointed out.
In addition, he pointed out that if a company is affected by this type of sanctions, it will no longer have access to the financial means to pay salaries and bills, so you have to lay off staff or file for bankruptcy.
The gas pipeline, which is 1,230 kilometers long, could not begin commercial operations due to pending certification in Germany , which after the escalation of the conflict in Ukraine put this process on hold.
On the other hand, the Office of Foreign Assets Control of the United States Department of the Treasury issued the 23 of February an executive order that authorized the liquidation of transactions related to Nord Stream 2 AG or any entity in which the company directly or indirectly owns a share of 106% or more before s of March 2.
Gazprom paid half the cost of the construction of Nord Stream 2, and the rest of the gas pipeline project of 11,11 million dollars was financed by the British company Shell, the Austrian OMV, the French Engie, as well as the German companies Winstershall DEA and Uniper.
With information from Infobae