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Europe stands divided on Gazprom’s Nord Stream 2 pipeline

12 October 2017
Furnizare
energynomics

Nord Stream 2—Gazprom’s pipeline project to twin the existing Nord Stream pipeline between Russia and Germany via the Baltic Sea, is dividing European nations and European Union (EU) institutions—with one group cheering on the resultant cheap gas, and the other group fearing Russia’s increased grip on the region.

Proponents and supporters of the project argue that Germany and neighboring countries will get cheap, reliable gas from Russia that will complement—not replace—gas from existing supply routes.

Opponents of the project argue that Russia’s Gazprom will increase its share of the European gas market, which would boost its already dominant position in Central and Eastern Europe, and therefore undermine the efforts of some European countries to diversify their gas supplies away from Russia, according to Oilprice.com.

Opponents also see Nord Stream 2 as Moscow gaining political leverage over the EU.

Nord Stream 2—currently planned for completion by the end of 2019—faces stiff opposition from Poland, the Baltic countries, and several other EU countries.

Germany, on the other hand, which will be the main beneficiary of the new gas supplies, says that the project is just business, and should not be made political. Denmark is now looking to amend a legislation that would block pipelines in its waters, citing security and foreign policy concerns along with environmental concerns.

The EU’s executive arm, the European Commission, wants a mandate from EU member states to negotiate on Nord Stream 2 with Russia. However, legal experts of the Council of the European Union—the EU’s main decision-making body together with the European Parliament—have recently said that there were no legal grounds for the EU to take over negotiations on behalf of member states, because its request for mandate contains “mere political arguments.”

The EU countries are expected to vote on the European Commission’s request for a mandate this fall.

 

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