More than 140 workers at the headquarters of Nord Stream 2 in Zug have been made redundant due to heavy sanctions placed on the Russian Federation for their military offensive in Ukraine. 

Nord Stream 2 considers filing for insolvency

Swiss Economic Minister Guy Parmelin announced the departure of the employees in an interview with public radio broadcaster RTS on Monday. “We have learnt that all the staff of Nord Stream 2 ... in Zug, i.e. more than 140 people, have been made redundant,” said the minister. 

The job losses were then confirmed on Tuesday morning by Nord Stream 2, which is also reported to be considering filing for insolvency, according to a member of the cantonal government. An official later clarified that no actual documentation filing for insolvency had been submitted yet. 

Nord Stream 2 attempts to settle before UN sanctions deadline

The job cuts are intended to allow the company to settle claims before a deadline set by the UN for other businesses to stop business dealings with the company. The United States already sanctioned the firm last week following the Russian invasion of Ukraine, in an attempt to stop more money flowing into Russia. 

The effects of this conflict are now being felt at home in Zug. It is not known precisely how many jobs are at risk in Switzerland due to the new sanctions, but it seems unlikely that Nord Stream 2 is the only Swiss company that will be affected in such a way. 

It was hoped that the new pipeline would double the supply of Russian gas flowing into Germany, to set the country up for a shift away from coal and nuclear power. The German government has however announced that the now-complete pipeline would not go into operation until the Russian military withdraws from Ukraine. When contacted by RTS, Nord Stream 2 did not give any comment on the issues raised.