Lynch is asking the US government to allow him to bid for the gas pipeline leading from Russia to Germany if it is auctioned in the Swiss bankruptcy proceedings. His main argument is that American ownership of the pipeline would provide leverage in any peace negotiations with Russia and would serve long-term US interests.
“Bottom line: This is a once-in-a-generation opportunity for American and European control of Europe’s energy supply for the remainder of the fossil fuel era,” Lynch said in a rare interview with the Wall Street Journal (WSJ).
Lynch, who lives in Miami and was a major contributor to Donald Trump’s presidential campaign, says he “wants to be the richest person you’ve never heard of.” However, his bold plan to buy Nord Stream 2 would make him known to the public.
The 1,230-kilometer long gas pipeline was completed before the Russian invasion of Ukraine in February 2022, but it was never commercially operational. It is owned by a subsidiary of the Russian state gas giant Gazprom, which declared bankruptcy in Switzerland a few days after the start of the invasion. In September 2022, the gas pipeline was destroyed by underwater explosions. According to earlier WSJ findings, a Ukrainian sabotage team was behind them.
It will cost a small fortune
The Swiss bankruptcy proceedings for Nord Stream 2 are scheduled for January 2025. If Gazprom’s daughter does not undergo restructuring by then, it will be up for grabs at auction, and 57-year-old Lynch said that he intends to buy the gas pipeline valued at approximately $11 billion (almost CZK 268 billion). “for a pittance,” sources familiar with the situation told the WSJ.
According to him, many potential investors will not apply for the offer due to the complex geopolitics associated with the gas pipeline. The rest will probably come from Russia and China, which is against American interests.
Businessmen and former government officials with experience in Russia told the WSJ that Lynch’s plan faces significant obstacles. However, it could gain momentum if it is indeed possible to use the gas pipeline in peace negotiations in Ukraine, as soon as Trump, who before his election promised to end the war quickly, takes a seat in the White House.
Lee Wolosky, a former special adviser to outgoing President Joe Biden and Lynch’s friend, said that the investor’s proposal to negotiate the purchase of Nord Stream 2 is in the strategic interest of the US and its allies.
“Biden and the incoming Trump administration should be able to agree on this. His background as an American investor who deftly navigated Russia makes him well-prepared to lead this effort,” he said.
Business past in Russia
In the past, Lynch was successful in cheap purchases of Russian assets, which earned him a reputation as one of the few American investors able to navigate the tense business and political scene that prevails in the country. The US Treasury previously granted it a license to complete the acquisition of the Swiss subsidiary of Russia’s Sberbank in 2022 after the US imposed sanctions on the parent company.
However, question marks hang over Lynch, or rather over his ties to the Russian government. In 2007, together with other foreign investors, he was accused of fraud when he was supposed to participate in a rigged auction of the assets of the former Russian oil giant Yukos, which was split up after the company was accused of tax evasion. Managers of the Dutch subsidiary of Yukos claimed that the investors conspired with Russian state officials to pre-determine the sale of the company at a fixed price.
Lynch and other investors denied the accusations. Then in 2019, a British court proved them right when it dismissed the charges against Lynch and other investors and wrote that the defendants “did not indicate any dishonesty” during the 25-day trial.
