German foundation withdraws from Nord Stream 2 project

A German public foundation established to help Russia’s Gazprom complete the Nord Stream 2 gas pipeline seeks to pull out of the project.

That’s according to Reuters, Ukrinform reports.

The foundation “wants to pay 12 million euros ($12.10 million) to settle its liabilities to the company’s subsidiary Nord Stream 2 AG,” the report reads.

The foundation had not yet clarified whether it would be hindered from transferring the money by sanctions laws. Set up in 2021 with a 20 million euro donation from Nord Stream 2 AG and 200,000 euros from Mecklenburg-Vorpommern state government, the foundation had a commercial arm to buy and own assets needed to complete the project.

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Erwin Sellering, the head of the foundation, said that his institution wants to cut all connections to Nord Stream 2 after paying 12 million euros in liabilities to the Switzerland-based Nord Stream 2 AG which completed the pipeline under the Baltic Sea last year.

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

In addition, the foundation will pay 2 million euros back to the company which it had accepted in advance payments.

In March 2022, Nord Stream 2 AG turned insolvent.