By Swann Collins, investor, writer and consultant in international affairs – Eurasia Business News. November 23, 2024. Article no 1317.
Stephen P. Lynch, a Florida-based businessman and supporter of president elect Donald Trump, has expressed interest in purchasing the Nord Stream 2 gas pipeline, which is currently inactive and lying at the bottom of the Baltic Sea.
Lynch aims to acquire the pipeline at an upcoming bankruptcy auction in Switzerland, where it may be sold due to the financial troubles of its operator, Nord Stream 2 AG, a subsidiary of Gazprom. The financier says a deal for the Russian pipeline would serve long-term U.S. interests.
Valuation and Purchase Intent: The Nord Stream 2 pipeline has been valued at approximately $11 billion, but Lynch believes he can acquire it for significantly less, potentially “pennies on the dollar.” He views this acquisition as a “once-in-a-generation opportunity” for American and European control over energy supplies in Europe.
Geopolitical Context: Lynch’s bid comes amid ongoing geopolitical tensions and discussions about energy security in Europe, particularly following Russia’s invasion of Ukraine. He argues that U.S. ownership of the pipeline could provide leverage in future negotiations with Russia.
German prosecutors issued in August 2024 a European arrest warrant for a Ukrainian diving instructor, identified as Volodymyr Z., in connection with the 2022 sabotage of the Nord Stream gas pipelines. The suspect is believed to have been part of a skilled group of Ukrainian divers who chartered a German yacht, sailed into the Baltic Sea, and planted explosives that detonated three of the four Nord Stream pipelines.
The explosion of three lines of the NordStream and Nord Stream 2 gas pipelines on September 26, 2022 would have been planned back in 2014, before the entry of Crimea into Russia and the start of the armed conflict in Ukraine in February 2022, wrote last July the German newspaper Welt am Sonntag, citing data from German and international investigators and special services.
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In November 2023, the US newspaper Washington Post and the German newspaper Der Spiegel, citing Ukrainian and European officials, claimed the explosion of three lines of the Nord Stream 1 and NordStream 2 gas pipelines in September 2022 was coordinated by the former commander of a special operations unit of the Armed Forces of Ukraine, Colonel Roman Chervinsky.
Previous Experience: Stephen P. Lynch has a background in navigating business dealings in Russia, having lived there for two decades and previously acquiring distressed assets. His past includes obtaining a license from the U.S. Treasury to purchase the Swiss branch of Sberbank amidst sanctions against Russia.
Political Implications
Lynch’s proposal has garnered attention due to its potential political ramifications. As a prominent donor to Republican campaigns, he may leverage support from the Trump administration to facilitate the acquisition. There is also speculation that both the Biden administration and incoming Trump administration could find common ground on this issue, given its implications for U.S. energy strategy and foreign policy.
Current Status
Lynch has sought permission from the U.S. government to bid on the pipeline and is preparing for the bankruptcy proceedings expected in January 2025. The outcome of these proceedings will determine whether he can proceed with his plans or if other bidders—potentially less aligned with U.S. interests—will emerge.
In summary, Stephen Lynch’s bid for the Nord Stream 2 pipeline represents a significant move in the context of U.S.-European energy dynamics and reflects broader geopolitical considerations as the region navigates ongoing tensions with Russia.
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© Copyright 2024 – Eurasia Business News. Article no. 1317
Eurasia Business News 