Miami entrepreneur eyes Nord Stream 2 in controversial bid
Stephen P. Lynch, an American entrepreneur from Miami, is attempting to purchase the Nord Stream 2 pipeline, which was damaged in 2022 due to an act of sabotage, the "Wall Street Journal" reported on Friday. Lynch believes that acquiring the pipeline aligns with the long-term interests of the United States and increases the chances for peace in Ukraine.
In February, Lynch requested a licence from the U.S. Department of Treasury, which would allow him to negotiate with the entities controlling Nord Stream 2.
If Swiss authorities decide that the company controlling the pipeline, based in Switzerland, and which has filed for bankruptcy, will be put up for auction, then Lynch, with the necessary licences, will attempt to buy it - reported the "WSJ". The newspaper obtained a letter from Lynch's lawyers at WilmerHale addressed to the U.S. Department of Treasury.
The American wants to buy the pipeline
The entrepreneur must obtain Washington's approval to engage in these discussions because the entities controlling Nord Stream 2 are under U.S. sanctions.
Lynch has been doing business with Russia for over two decades, and during this year's presidential campaign, he strongly supported President-elect Donald Trump's camp, the "WSJ" noted.
The purchase of Nord Stream 2 would be the biggest opportunity for Americans and Europeans to ensure control over the energy security of the Old Continent "for the rest of the fossil-fuel era", Lynch said in one of his media interviews.
In the letter from Lynch's lawyers, it was noted that in January, as part of the Swiss procedure regarding the bankruptcy filing, a decision is to be made on whether Nord Stream 2 will restructure its debt. The entrepreneur's lawyers assessed the chances of this as slim, so the company's assets will likely be sold. According to the American businessman, with the end of Russia's war with Ukraine, Germany, like Russia, will want to restore Nord Stream 2 to operation, regardless of ownership, according to the "WSJ".
He wants to acquire Nord Stream 2 "for pennies"
Friends and associates of Lynch share his opinion about Nord Stream 2 and believe that he can achieve his goal. One argument presented by his supporters is that Lynch has managed to acquire many Russian entities in the past. In 2022, he obtained a licence from the U.S. Department of Treasury to purchase the Swiss part of Sberbank, which was sanctioned by the United States.
At the same time, the newspaper noted calls for caution regarding Lynch's intentions. Some people close to the matter informed the "WSJ" of suspicions of excessively close contacts between the entrepreneur and Moscow.
In 2007, a civil lawsuit was filed against Lynch and several other investors in a London court for participation in a rigged auction during which they purchased shares of the Russian fuel giant Yukos. The court dismissed the charges, stating that during the proceedings Lynch and the other investors were "were found liable" and cooperative.
According to "WSJ" information, Lynch declared to his acquaintances that he is able to acquire Nord Stream 2, valued at $11 billion (approximately €10.5 billion), for "pennies". The businessman believes that many investors will not want to participate in the auction due to the complex geopolitical circumstances of this investment. Therefore, the involved stakeholders will likely come from countries maintaining close relations with Russia, such as China, which act against U.S. interests, the newspaper reported.
A group of American senators and officials in the U.S. Department of Treasury and the State Department have been informed of Lynch's plans, the "WSJ" reported.
Damage to the Nord Stream pipelines
Nord Stream 2 was one of Russia's key energy investments. The pipeline, running along the bottom of the Baltic Sea, is 767 miles (approximately 1,235 km) long, connecting Russia and Germany. The project was completed, but the operation of the pipeline had not begun because on 24 February 2022, the Kremlin launched a full-scale invasion of Ukraine.
In September 2022, Nord Stream 1, operational since 2011, as well as Nord Stream 2, were damaged due to two explosions. According to a "Wall Street Journal" investigation, Ukrainian special services, supported by the Polish authorities, were responsible for the sabotage.
