A court in Zug, Switzerland, determined last week that the operating company responsible for the damaged Nord Stream pipeline in the Baltic Sea is permitted to continue its operations. The announcement has resurrected hopes amongst the pipeline supporters in Germany and provided an excellent opportunity for energy experts to review the current LNG import situation in the country. On March 27, 2025, analysis from energy think tank Ember finds that imports of Russian gas to the EU rose by 18% in 2024 and confirmed a continuing trend in 2025, with the EU averaging 74.3 million cubic meters per day (mcm/day) of Russian LNG imports in February. Embers’ report indicates that in February 2025, the EU received 56 (mcm/day) of Russian gas via the TurkStream pipeline, a 11% monthly increase. The rise was driven by increased imports into Italy, Czechia and France. The gigantic Nord Stream pipeline project, which was completed in 2021, was rendered non-operational after the German regulatory authority (BNetzA) suspended the procedure to certify Nord Stream 2 (NS2 AG), comically justifying their decision by blaming Russia’s Special Military Operation in Ukraine, in February 2022. The later sabotage in September 2022, which damaged sections of both Nord Stream 1 and Nord Stream 2, added further challenges to its prospects, to the delight of Norway and the US, who became the two major gas exporters to Europe.
Yet, here we are, almost three years later, with an increasing number of reports indicating that the United States and Russia are considering a strategy to reinstate Nord Stream 2, wherein American investors may purchase gas from Russia and subsequently market it as American-branded gas in Europe. Russian Foreign Minister Sergei Lavrov has acknowledged these discussions, suggesting it would be noteworthy if the United States were to persuade Europe to re-embrace Russian gas.
Could the Nord Stream Pipeline be used as leverage in the negotiations between the United States and Russia to address the end of the conflict in Ukraine?”
On Friday, Chancellor Friedrich Merz of Germany dismissed proposals to restart the Nord Stream 2 pipeline, referencing its absence of an operational license, which he deems unlikely to change, as reported by Die Zeit. According to the German outlet, the AfD proposal to reactivate both the Nord Stream 1 and Nord Stream 2 pipelines for the importation of Russian natural gas into Germany faces significant resistance from a substantial majority within the state parliament of Mecklenburg-Western Pomerania. Members of the SPD, CDU, Left Party, Greens, and FDP collectively opposed a motion put forth by the AfD during the session held in Schwerin. In 2024, the German Federal Network Agency reported that liquefied natural gas at the Mukran LNG terminal on Rügen Island made up about eight per cent of Germany’s gas consumption. Norway was the main supplier, providing 48 per cent, followed by the Netherlands at 25 per cent and Belgium at 18 per cent. Germany also produced four per cent of its own natural gas. Last week, the Cantonal Court of Zug, where Nord Stream 2 is based, approved the restructuring agreement between the indebted pipeline operator Nord Stream 2 AG and its creditors. The Court has repeatedly prolonged the final debt restructuring moratorium for Nord Stream 2, surpassing the maximum duration of 24 months. The company, which was required to settle its obligations to approximately 150 creditors by May 9, has succeeded in reaching an agreement with its creditors.
It is indisputable that an operational Nord Stream 2 pipeline could facilitate Russian President Putin’s willingness to consent to a peaceful resolution of the conflict in Ukraine, positioning Nord Stream as a genuinely constructive element in fostering peaceful progress. Notwithstanding the existing political and economic stumbling blocks, including Merz’s opposition and EU President Ursula Von Der Leyen’s declaration at the European Political Community summit today, where she stated her intention to implement further sanctions aimed at the Nord Stream pipeline, there remains considerable speculation about the potential resumption of Russian gas supplies to Europe through the Nord Stream pipeline…
VIDEO: EU President, Ursula Von Der Leyen, announcing sanctions on Nord Stream at European Political Community Summit (Source: DRM News)
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Oliver Stock reports for FOCUS…
Court allows Nord Stream restart – a minister might secretly be pleased
The operating company of the blown-up Nord Stream pipeline is not going bankrupt. This leaves investors open to getting the pipelines running again. The new German government isn’t all that opposed to this.
Last week, the Cantonal Court in Zug ruled that the operating company of the sabotaged Nord Stream Baltic Sea pipeline may continue operating – and not go bankrupt. Had the company been forced to file for bankruptcy, the pipeline’s operating license would have also expired. As it stands, however, it continues to exist and can – theoretically – be repaired and put back into operation.
The search for a financier to make this happen is already underway. And since a US investor has since expressed interest, a resumption of gas supplies from Russia is becoming a possibility.
For a long time, cheap Russian gas flowed to Germany through the Nord Stream pipeline. With Russia’s attack on Ukraine, the gas flow became more sparse. Since three of its four pipes were destroyed in an attack in September 2022, the pipeline has been in ruins. Those responsible for the act of sabotage have not yet been officially identified. Traces point to Ukraine, but also to other countries.
Trump supporters as Nord Stream investors?
Since then, the operating company, which is headquartered in the Swiss canton of Zug, has been essentially bankrupt. However, the operating company’s major creditors have now agreed on a restructuring agreement. According to the court, this agreement provides for the payment of small creditors, including those pipe-laying contractors who worked until the very end on the completion of a new Nord Stream pipeline.
The operating company and major creditors now intend to continue their search for an investor. A potential buyer is considered to be a wealthy US businessman and supporter of US President Donald Trump, Stephen P. Lynch. Lynch told the Wall Street Journal that the purchase represents a unique opportunity to bring Europe’s energy supply under American and European control. Russian gas could then flow back to Germany under the auspices of the American Nord Stream owners.
More Russian gas is coming to Europe again
Even since the destruction of Nord Stream, gas from Russia has continued to flow to Europe. The volumes arriving, primarily by ship, are even increasing again. The increase in 2024 was 18 percent compared to the previous year, according to calculations by the global energy think tank Ember. This includes both gas that entered the EU via pipelines and liquefied natural gas (LNG).
According to Ember, Italy, the Czech Republic, and France in particular, have increased their imports of gas from Russia. Imports will continue to rise in 2025, the think tank added. The international community intends to stop importing gas from Russia by 2027, but this plan is not legally binding.
What role does the nationalised energy company from Germany play?
The now-nationalised German energy utility Uniper is among the major creditors of the Nord Stream operating company. SPD Finance Minister Lars Klingbeil, however, stated that Uniper “does not operate under instructions” and that “the company itself is responsible for its operational management.”
However, Uniper is 99.12 per cent owned by the Federal Republic of Germany. The federal government acquired this stake in the faltering company in December 2022 to secure Germany’s energy supply. The Ministry of Finance, which nevertheless declined to declare itself responsible, refers to the Ministry of Economic Affairs under the new leadership of CDU Minister Katherina Reiche.
New Minister of Economic Affairs focuses more on gas
And from there, signals are coming that place significantly more emphasis on gas as an energy source for Germany’s energy supply than was the case under Reiche’s predecessor, Robert Habeck (Greens). The minister is pushing for the construction of new gas-fired power plants.
She calls for a reality check on the energy transition.
“We need flexible gas-fired power plants that supply electricity when the wind isn’t blowing and the sun isn’t shining. And we need that quickly,” said the CDU politician. “Long-term gas supply contracts” are necessary.
Nord Stream could become part of peace negotiations
The pipeline could thus become an important component of peace talks (…). A functional pipeline would allow gas to be sold and delivered without hindrance, which could potentially make it easier for Russian leader Vladimir Putin to agree to a peace solution to the Ukraine war.
However, the Trump administration has so far strictly rejected reports that Nord Stream had already been part of the preliminary talks, as reported by the news platform Politico.
This article was published in cooperation with Business Punk.
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