Nord Stream 2 subject to EU gas market rules

RUSSIA / FSU POLITICS - In Brief 16 May 2020 by Alex Teddy
On May 15 the German energy regulator stated that Nord Stream 2 will have to comply with EU rules on the gas market. Nord Stream 2 investors had hoped for an exception to be made. The pipeline will bring gas from Russia to Germany.An EU directive requires gas production and distribution to be independently organized. An exemption might have been granted if the pipeline had been finished in May 2019.Gazprom and western partners run Nord Stream 2. The project has not been physically completed but is financially viable. Gazprom is considering a legal challenge to the ruling. The 1230 km pipeline is already well behind schedule. It will cost USD 11 billion and will be able to export 55 billion cubic meters per annum. 160 km of the pipeline remains to be laid near Denmark.The US passed a law in 2019 allowing sanctions on any ship that assists the pipeline. The US is against the pipeline because it will grant Russia leverage over the EU energy market. It will allow Russia to bypass Ukraine. Moscow says that the US is opposed to Nord Stream 2 because the US wants to sell its LNG to the EU.

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