Germany seeks law amendments to block Russian Nord Stream 2 sale, says Bloomberg

The German government is exploring legislative amendments to prevent the possible sale of the Nord Stream 2 gas pipeline amid speculation about the potential revival of Russian pipeline gas deliveries.

Source: Bloomberg

Details: Germany’s Federal Ministry for Economic Affairs and Climate Action confirmed it is examining amendments to investment inspection laws. The current Foreign Trade and Payments Act does not permit blocking the sale of Nord Stream 2 AG, a Swiss-registered company within the European Free Trade Association.

Investment scrutiny is currently limited to companies outside the EU or European Free Trade Association, creating a legal loophole that Berlin aims to close due to the pipeline operator’s strategic risks and financial difficulties.

Speculations about selling Nord Stream 2 assets intensified after US President Donald Trump began calling for an end to the war between Russia and Ukraine earlier this year. In response, several industry figures in Germany's east openly backed a return to cheap Russian pipeline gas. Reports also indicate interest from an American investor in the pipeline’s assets.

Berlin has firmly rejected proposals to revive the gas pipeline connecting Germany and Russia. Chancellor Friedrich Merz has recently endorsed EU initiatives to include partially damaged pipeline sections in sanctions against Russia.

Background:

• The EU is nearing a decision to include Nord Stream 2 in a new sanctions package against Russia.
• The European Commission plans to propose lowering the price cap for Russian oil and banning the use of Nord Stream infrastructure in its upcoming sanctions package.
• EU companies will be required to disclose details of any contracts involving Russian gas supplies to the EU in accordance with upcoming European Commission proposals to ban imports of Russian gas by the end of 2027.

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