An American businessman, Stephen Lynch, who previously worked closely with Rosneft, Russia’s state oil company, is aiming to buy a Swiss company that controls Russia’s controversial Nord Stream 2 natural gas pipeline, according to U.S. Treasury and other documents obtained by The Washington Post.
Lynch’s proposal could pave the way to reactivating the pipeline, which links Russia and Germany if a cease-fire is reached in the ongoing war in Ukraine. This move comes as Europe braces for President-elect Donald Trump to advocate for negotiations between Moscow and Kyiv, and as German Chancellor Olaf Scholz tries to position himself as a peace mediator. Scholz even spoke with Russian President Vladimir Putin last week for the first time in nearly two years.
Lynch describes his acquisition plan as a way to “de-Russify” the pipeline and bring it under American control, according to documents, including an application sent in February to the U.S. Treasury’s Office of Foreign Assets Control (OFAC), which enforces U.S. sanctions. The company, Nord Stream 2 AG, was sanctioned by the U.S. after Russia invaded Ukraine.
The company that owns Nord Stream 2, Russia’s Gazprom, is reportedly facing bankruptcy under Swiss law, with proceedings set to start on January 1, 2025. A person involved in Lynch’s bid suggests that selling to Lynch might be the best option for Gazprom, as he is a trusted figure in Russia. Gazprom did not respond to requests for comment.
Lynch has a history of dealing with Russian state assets. In 2007, he worked with Rosneft to acquire assets from the now-defunct Yukos oil company, a deal that drew criticism. However, Lynch’s participation helped legitimize the Russian government’s takeover of Yukos. In 2022, Lynch successfully acquired a Swiss branch of the Russian state bank Sberbank, which allowed U.S. sanctions to be lifted.
Lynch believes that buying Nord Stream 2 would benefit the U.S. and its allies. He argues that removing the pipeline from Russian ownership would advance U.S. foreign policy goals. However, some U.S. officials question whether reopening Nord Stream 2 aligns with American interests. They note that Russian gas has long been seen as a tool for Europe’s reliance on Russia, a situation the U.S. has tried to avoid since the invasion of Ukraine.
Lynch’s bid has raised eyebrows in Europe as well. German Chancellor Scholz is facing a no-confidence vote and is pushing for a peace deal with Russia, which could involve restarting Nord Stream 2. However, some critics suggest that Scholz’s efforts to broker peace might be motivated by his desire to stabilize his political position amid a faltering economy.
Lynch has enlisted influential German lobbyists to support his deal, including former diplomats who have been involved in the Nord Stream 2 project. Some members of Germany’s political elite, facing an economic downturn, may be open to restoring ties with Russia, and reports suggest that back-channel talks with Moscow are already taking place.
This complex situation continues to unfold, as Lynch’s bid for the pipeline could reshape the future of European energy security and U.S. foreign policy.
