Nord Stream 2 pipeline operator lays off employees following sanctions

The Nord Stream 2 pipeline’s operator has laid off its employees in the wake of sanctions against the natural gas pipeline and lobbyists who have since canceled their contracts with the operator.

“Following the recent geopolitical developments leading to the imposition of U.S. sanctions on Nord Stream 2 AG, the company had to terminate contracts with employees. We very much regret this development,” the operator said in a statement, according to Reuters.

A Swiss official also confirmed to The Wall Street Journal that all of the operator’s 106 employees had been let go, adding that “continued employment is no longer possible due to the payment difficulties.”

The development comes less than a week after President Biden announced the United States would be sanctioning the Russian parent company of the pipeline, Nord Stream 2 AG, and its executives after Russia sent troops into Ukraine. 

The pipeline has already been completed, but was pending regulatory review before it could be used.

“These steps are another piece of our initial tranche of sanctions in response to Russia’s actions in Ukraine. As I have made clear, we will not hesitate to take further steps if Russia continues to escalate,” the president said last week.

Since then, lobbyists in Washington, D.C. — Roberti Global and BGR Group — have canceled their contracts with the pipeline, a further blow to its business. Spokespeople for both firms said they were doing so in compliance with the announced sanctions.

A host of other companies and organizations have announced divestments, modified services and bans in connection to Russia’s invasion in Ukraine. 

Among the most prominent moves were energy companies Shell and BP pulling out of Russia. 

“Russia’s attack on Ukraine is an act of aggression which is having tragic consequences across the region. bp has operated in Russia for over 30 years, working with brilliant Russian colleagues,” BP Chairman Helge Lund said in a statement Monday announcing it would be divesting from Russian oil company Rosneft. 

“However, this military action represents a fundamental change. It has led the bp board to conclude, after a thorough process, that our involvement with Rosneft, a state-owned enterprise, simply cannot continue,” Lund added. 

The Hill has reached out to Nord Stream 2 AG for comment.