Uniper Warns of Potential Nord Stream 2 Loan Write-Off in 'Worst-Case Scenario'

By Olaf Ridder and Giulia Petroni

Uniper SE might have to write off a loan provided to a Russian natural gas pipeline known as Nord Stream 2, the company said Tuesday citing the threat of U.S. sanctions that could derail the project.

"We view the development around the sanctions with concern," Chief Executive Andreas Schierenbeck said, though added that Uniper wouldn't be directly hit by the sanctions.

The German utility said the project collapse is seen as "the worst-case scenario" and it instead expects the pipeline to be completed in spite of increasing political resistance.

The U.S. has been trying to thwart the project connecting Russia to Central Europe, arguing it would increase Europe's dependency on Moscow. U.S. Secretary of State Mike Pompeo last month lifted a proviso that exempted the pipeline from sanctions.

Together with Royal Dutch Shell PLC, OMV AG, Engie SA and Wintershall AG, Uniper has provided funding to the pipeline, which is owned by Russia's gas export monopoly Gazprom PJSC.

Write to Olaf Ridder at [e-mail] and Giulia Petroni at [e-mail]

(END) Dow Jones Newswires

August 11, 2020 11:46 ET (15:46 GMT)

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