Bank allegedly withdrawing funds from Schröder's account?

Sparkasse allegedly transferring funds from ex-Chancellor Schröder: Analyzing the hidden factors - Bank allegedly withdrawing funds from Schröder's account?

Revised News Text

Former Chancellor Gerhard Schröder's income from the Nord Stream 2 gas pipeline project has reportedly stopped due to banking concerns over potential US sanctions.

According to German newspaper Bild, Sparkasse Hannover has halted payments to Schröder as they have been rejecting corresponding payment entries from the Luxembourg branch of the Russian Gazprombank since mid-last year. Financial institutions in Germany have taken this precautionary measure due to fears of being hit by sanctions from the USA and other countries.

The U.S. Department of the Treasury sanctioned Gazprombank on November 21, 2024, including its subsidiaries in Luxembourg and Cyprus. The bank is accused of being controlled by the Kremlin, used for paying the military's salaries, international arms purchases, and settling oil and gas bills. The Kremlin later lifted this requirement in December 2024. It is unclear where Russian customers are now paying their energy bills or if Schröder is receiving his Nord Stream salary from another, previously unsanctioned bank, or in cash.

The EU is currently working on a new, 18th sanctions package against Russia, which may include an operation ban on the Nord Stream pipelines. This could be to counter American interests, as there were speculations that U.S. actors might be interested in taking over the operation of the Nord Stream pipeline. Whether the EU will also join the sanctions against Gazprombank remains uncertain.

Meanwhile, Schröder defended the energy policy cooperation of his former government with Russia last week. He argued that natural gas and pipelines are more environmentally friendly than heavy oil-powered LNG tankers.

Nord Stream 2 AG, fully owned by the Russian state energy giant Gazprom, avoided bankruptcy in May of this year through a restructuring approach that involves debt reduction. This move helps the company avoid restarting the previously unfinished permitting process for the pipeline. The impact of a potential EU operating ban and the legality of paying a board chairman of a company whose business purpose is prohibited under sanctions remain to be seen.

• Gerhard Schröder
• Nord Stream 2
• Pipeline
• Kremlin
• EU

1. The Commission has also been asked to submit a proposal for a directive on the protection of the environment, focusing on the financial aspects related to the controversy surrounding Gerhard Schröder's income from the Nord Stream 2 pipeline.
2. The industry and energy sectors, particularly in Europe, have been closely watching the political scenarios regarding the Nord Stream 2 pipeline, given the ongoing sanctions on the Kremlin-controlled Gazprombank and the possible EU ban on the pipeline's operation.
3. The general news and crime-and-justice segments of various media outlets have been reporting on the complex web of payments involving Schröder, the Nord Stream 2 pipeline, and the Gazprombank, raising concerns about potential violations of sanctions and international laws.

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