Gazprom division Nord Stream 2 deferred for debt restructuring

The Swiss-based unit of Russian state gas company Gazprom, which built the Nord Stream 2 gas pipeline from Russia to Germany, has been given a long grace period to restructure its debts.

The area now has until January 10, 2023 to get things in order. The actual deadline ended on September 10.

The $11 billion gas pipeline was completed last year. With the commissioning of Nord Stream 2, the capacity to transport gas from Russia to Germany will be doubled. The plan was controversial from the start because it would strengthen Russia’s energy grip on Europe. Also, Nord Stream 2 will cause Ukraine to lose revenue from Russian gas transit, as the gas pipeline passes through the Baltic Sea.

In February, Germany halted the pipeline approval process after cutting ties with Moscow ahead of Russia’s invasion of Ukraine. The US embargoed Nord Stream 2, putting the company under financial strain.

Earlier, the Switzerland-based company canceled all contracts with employees due to US sanctions. More than 100 people have lost their jobs due to this.