Lynch, based in Miami, has requested a license from the U.S. Treasury Department to engage in talks with entities controlling the pipeline, which was damaged in 2022 in an act of sabotage. If Swiss authorities approve the bankruptcy auction of the pipeline’s controlling company, Lynch plans to bid, provided his license is granted.
Strategic acquisition
The Nord Stream 2 pipeline, valued at USD 11 billion, was completed but never operational following Russia’s February 2022 invasion of Ukraine. Lynch argues that acquiring the pipeline aligns with U.S. interests, offering leverage over Europe’s energy security "until the end of the fossil fuel era," he said in an interview.
The U.S. Treasury's approval is essential, as the pipeline’s operators are under American sanctions. Lynch has previously managed to navigate similar restrictions, acquiring the Swiss arm of Sberbank in 2022, WSJ noted.
Geopolitical and business calculations
The potential sale of Nord Stream 2 assets hinges on a Swiss bankruptcy court’s January decision regarding the pipeline company’s debt restructuring. Lynch predicts low interest from major Western investors due to the complex geopolitical context, leaving the field open for entities from nations with close ties to Moscow, such as China.
Lynch believes securing the pipeline under U.S. oversight would counteract adversaries acting against American interests.
Skepticism and criticism
Lynch’s ambitions have drawn scrutiny. While his supporters, including former diplomat Lee Wolosky, argue that the acquisition serves U.S. and allied interests, others point to his history of dealings in Russia. Critics highlight concerns about Lynch’s alleged ties to Moscow, including his role in a controversial auction of Yukos Oil assets in 2007. A London court dismissed accusations against him at the time, citing his cooperation during proceedings.
Pipeline and sabotage background
The 1,234-kilometer Nord Stream 2 pipeline was a cornerstone of Russia’s energy strategy, connecting Russia to Germany via the Baltic Sea. However, it became a geopolitical flashpoint after Russia’s invasion of Ukraine, which halted its operational approval.
In September 2022, explosions damaged both Nord Stream 1 and 2. WSJ reported that Ukrainian intelligence, allegedly supported by Polish authorities, orchestrated the sabotage—a claim both governments deny.
Lynch’s plans have reached members of the U.S. Senate, Treasury, and State Department, WSJ said. U.S. officials have yet to comment publicly on his bid.
(jh)
Source: PAP, The Wall Street Journal