France's ENGIE may suffer $1B loss if Nord Stream 2 files for bankruptcy

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French energy giant ENGIE is facing a financial risk of $987 million if Nord Stream 2 AG, the operator of the Nord Stream 2 gas pipeline, files for bankruptcy.

Russia is currently facing Western sanctions over its decision to launch a special military operation in Ukraine to "protect the Donbass Republics, and to de-Nazify Kiev."

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Engie's board of directors announced their decision not to engage in any industrial activities in Russia, and not to partake in any investment in the country.

"Regarding the Nord Stream 2 project, that ENGIE helped finance since April 2017 alongside four other European investors, the Group, as a lender, is exposed to €987million of credit risk which could impact its accounts in the event of Nord Stream 2 filing for insolvency," the company said in a statement. 

ENGIE also said it will support Western sanctions against Russia, even if these sanctions affect gas supplies from Moscow.

"Should European sanctions affect Russian supplies – which account for 40% of all  European gas needs, across all operators - ENGIE would comply with such decision at all levels," the company's statement said, adding that it would "work hand-in-hand with authorities."

French President Emmanuel Macron said on Wednesday that many sectors of France's economy are suffering as a result of the conflict with Ukraine.

"Our agriculture, our industry, many sectors of the economy are suffering and will continue to suffer, either because they depend on primary raw materials imported from Russia or Ukraine, or because they export to these countries," Macron said in a televised address to the French people.