Germany Considers Changing Foreign Trade Law to Prevent Nord Stream 2 Takeover

Germany is contemplating a revision of its foreign trade law to thwart any potential takeover of the Nord Stream 2 pipelines, according to a document revealed on Friday. This move is part of Berlin’s strategy to prevent the resumption of Russian gas imports.

For years, Germany has heavily relied on affordable Russian gas. However, since the conflict in Ukraine erupted, the country has been actively seeking alternative sources.

German Chancellor Friedrich Merz has expressed his commitment to ensuring that Nord Stream 2, a project that Germany previously supported, does not become operational. At present, Germany lacks the legal mechanisms to prevent the sale of the assets, which are currently owned by the Russian giant Gazprom.

The Nord Stream pipeline system consists of two parallel pipelines running beneath the Baltic Sea to Germany, serving as a crucial route for Russian gas into Europe, with a capacity of 110 billion cubic meters per year.

Although the second link of Nord Stream 2 was completed in 2021, it has yet to become operational due to escalating tensions between Russia and Western nations. Additionally, the project was marred by unexplained explosions in 2022 that damaged one of its two lines.

Swiss-based Nord Stream 2 is currently undergoing insolvency procedures that could potentially lead to asset sales. Reports surfaced in November suggesting that U.S. investor Stephen P. Lynch was pursuing the acquisition of Nord Stream 2, a claim that the Russian government promptly refuted.

In response to a parliamentary inquiry dated June 24, the German Economy Ministry disclosed ongoing discussions regarding a possible amendment to the foreign trade law during the current legislative session, as the existing law does not encompass provisions for reviewing investments in the event of a takeover.

Former state secretary of the economy ministry and Green lawmaker Michael Kellner emphasized the necessity of closing this regulatory gap, stating that pipelines in Germany or Europe should not be under the control of Russian or American companies.

Gazprom has not provided any comments in response to inquiries.

(Reuters)