Uniper May Have to Impair Nord Stream 2 Loan if Pipeline Project Fails

Christoph Steitz
Tuesday, August 11, 2020

German utility Uniper on Tuesday warned it may have to impair a loan provided to the planned Nord Stream 2 gas pipeline if the project collapses in the face of U.S. sanctions.

"With the U.S. intensifying their efforts on targeted sanctions against the Nord Stream 2 project the probability of a delay or even non-completion of the pipeline is increasing," the group said in its first-half report.

Uniper is not disclosing the size of the loan.

The company is one of the financial backers of the 9.5 billion euro ($11.2 billion) project led by Russia's Gazprom, along with Austria's OMV, Wintershall DEA, Shell, and France's Engie.

The companies have committed to each fund up to 950 million euros of the project costs, with Gazprom paying for the rest.

Uniper's remarks come as U.S. opposition to the pipeline is mounting. U.S. President Donald Trump has already signed a sanctions bill that delayed construction of the project but lawmakers are contemplating further action. 

($1 = 0.8513 euros) 

(Reporting by Christoph Steitz; editing by Thomas Seythal and Louise Heavens)

Categories: Subsea Pipelines Russia Industry News Activity Europe Regulations

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