Nord Stream 2 AG, the Swiss-based operator behind the Nord Stream 2 pipeline, has filed for bankruptcy and fired all 106 employees, local official Silvia Thalmann-Gut told SRF on Tuesday.

The company, based in Zug, released a statement to Reuters earlier in the same day confirming the layoffs. Although the pipeline is entirely constructed, gas has not yet started flowing.

"Following the recent geopolitical developments leading to the imposition of U.S. sanctions on Nord Stream 2 AG, the company had to terminate contracts with employees. We very much regret this development," the company confirmed to Reuters.

President Biden had relieved sanctions on the Nord Stream 2 pipeline from Russia to Central Europe in May of last year, according to the BBC.

However, in response to Russia's decision to invade Ukraine, Biden announced on Feb. 23 that sanctions would be re-imposed on the project, The Hill reported.

"These steps are another piece of our initial tranche of sanctions in response to Russia's actions in Ukraine. As I have made clear, we will not hesitate to take further steps if Russia continues to escalate," Biden said during a press briefing at the time.

A day before Biden's announcement last Wednesday, German Chancellor Olaf Scholz said the certification of the $11 billion natural gas pipeline would be halted, per CNN.

"With regard to the latest developments, we need to reassess the situation also with regard to Nord Stream 2. It sounds very technocratic, but it is the necessary administrative step in order to stop certification of the pipeline," Scholz said in Berlin.

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