German fund eyes payment to settle Nord Stream 2 AG liabilities -paper

BERLIN, July 17 (Reuters) - A German public foundation established to help Russia’s Gazprom complete the Nord Stream 2 gas pipeline wants to pay 12 million euros ($12.10 million) to settle its liabilities to the company’s subsidiary Nord Stream 2 AG, Welt am Sonntag reported on Sunday.

The newspaper reported the foundation had not yet clarified whether it would be hindered from transferring the money by sanctions laws.

Set up in 2021 with a 20 million euro donation from Nord Stream 2 AG and 200,000 euros from Mecklenburg-Vorpommern state government, the foundation had a commercial arm to buy and own assets needed to complete the project.

In February, Germany halted the $11 billion pipeline after relations with Moscow broke down ahead of Russia’s invasion of Ukraine. Shortly afterwards, Mecklenburg-Vorpommern state premier announced that the foundation would be wound down.

Erwin Sellering, the head of the foundation, told Welt am Sonntag that his institution wants to cut all connections to Nord Stream 2 after paying 12 million euros in liabilities to the Switzerland-based Nord Stream 2 AG which completed the pipeline under the Baltic Sea last year.

Some 10 million euros of the total amount is attributable to proceeds from the sale of machines, devices and materials and the purchases which Nord Stream 2 had once financed, Welt am Sonntag reported, citing the foundation.

In addition, the foundation will pay 2 million euros back to the company which it had accepted in advance payments, the newspaper added.

Nord Stream 2 AG was not immediately available to comment on the report.

$1 = 0.9914 euros Reporting by Riham Alkousaa; Editing by Christina Fincher