Germany is considering amending foreign trade law to prevent the Nord Stream 2 pipeline operator from being acquired, according to documents released on June 27.
In a response to parliament on June 24, the German Economy Ministry said that the government is discussing the possibility of amending foreign trade laws during this parliamentary term, as the current law does not stipulate investment review in case of takeover.
Mr. Michael Kellner, former Deputy Minister of Economy of Germany and now a member of the Green Party, said that the government needs to close this legal loophole. Gas pipelines in Germany or Europe should not be owned by Russian or US companies, he said.
For decades, Germany has relied on cheap gas from Russia, but since the conflict in Ukraine broke out, the country has sought alternative supplies.
German Chancellor Friedrich Merz has repeatedly affirmed that he will ensure that Nord Stream 2 will not be put into operation. However, Germany currently has no legal tools to prevent the sale of the pipeline, which is owned by Russian giant Gazprom.
The Nord Stream pipeline system consists of two pairs of Nord Stream and Nord Stream 2 pipelines connecting Russia to Germany across the Baltic Sea. Nord Stream used to be the largest route for Russian gas to Europe, with a capacity of up to 110 billion cubic meters per year. The Nord Stream and Nord Stream 2 pipelines were damaged in mysterious explosions in 2022, leaving only one branch of Nord Stream 2 intact.
Nord Stream 2 AG, a Swiss-based company, is in the process of going bankrupt, which could lead to a sale of assets.
Last November, Western media reported that US investor Stephen P. Lynch was trying to buy Nord Stream 2. Stephen Lynch was recently invited to attend a meeting at the German Ministry of Economy on June 6 to discuss a plan to buy Nord Stream 2.
When asked by the Green Party members about the meeting with Mr. Lynch, the German Ministry of Economy said that no meetings took place at high levels, but officials regularly exchanged information with organizations and individuals related to the professional field.
Under German law, Berlin can block changes in ownership rights related to non-EU investors in the key infrastructure sector if the transaction is assessed as "threatening public order or national security in Germany".
However, because the operator of the Nord Stream 2 pipeline is located in Switzerland, according to current law, the buyback deal will not be considered.
Recent plans to reactivate Nord Stream 2 have fueled a debate in Germany over Russian gas. However, the German government stressed to the Green Party members that it supports the European Commission's efforts to " Gradually end energy imports from Russia into the EU".
This will make an important contribution to strengthening the EUs independence and energy security. Germany currently no longer buys Russian gas via pipeline. No liquefied natural gas (LNG) from Russia is also being transported to German LNG ports, the document said.
