Miami mogul aims to buy Nord Stream 2 amid controversy

In February, Lynch requested a license from the U.S. Department of the Treasury, which would allow him to negotiate with the entities controlling Nord Stream 2.

If Swiss authorities decide that the Swiss-based company controlling the pipeline, which filed for bankruptcy, will be put up for auction, then Lynch, having the licenses, will attempt to buy it, according to "WSJ." The newspaper obtained a letter from Lynch's lawyers at WilmerHale addressed to the U.S. Department of the Treasury.

The entrepreneur must obtain Washington's approval to conduct these talks 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, "WSJ" reminded.

The purchase of Nord Stream 2 would represent 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 the media interviews.

In the letter sent by 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 that the chances for this are 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 who owns it, according to "WSJ".

Friends and associates of Lynch share the entrepreneur's opinion about Nord Stream 2 and believe that he can achieve his goal. One of the arguments presented by the businessman's circle is that Lynch has managed to acquire many Russian entities in the past. In 2022, he obtained a license from the U.S. Department of the 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 told "WSJ" that there are 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 other investors "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, 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 newspaper reported that the involved stakeholders will likely come from countries maintaining close relations with Russia—such as China, which acts against U.S. interests.

A group of American senators and officials in the U.S. Department of the Treasury and the State Department have been informed about Lynch's plans, "WSJ" reported.

Nord Stream 2 was one of Russia's key energy investments. The pipeline running along the bottom of the Baltic Sea, which is 767 miles long, connects Russia and Germany. The project was completed, but the operation of the pipeline had not begun because, on February 24, 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.