Nord Stream AG Nord Stream
Owners:
Gazprom - 51%
Owners
The length of the gas pipeline route from Portovaya Bay through the waters of the Gulf of Finland and the Baltic Sea directly to the coast of Germany (Greifswald) is about 1224 km.
The main task of the gas pipeline is to ensure the long-term energy security of Europe.
The construction and operation of the gas pipeline is carried out by Nord Stream AG, whose shareholders are:
- OAO Gazprom - 51%,
- E.ON Ruhrgas и Wintershall Holding — по 15,5%,
- Gasunie and GDF SUEZ - 9% each.
Nord Stream 2
Nord Stream 2, consisting of two lines, was supposed to be built by the end of 2019, it is considered one of the two main transit routes of Russian gas bypassing Ukraine along with the Turkish Stream through the Black Sea. The capacity of Nord Stream-2 is 55 billion cubic meters of gas per year, the project cost is €9.5 billion. The project participants, along with Gazprom, are key European gas consumers - German Uniper and Wintershall, Anglo-Dutch Shell, French Engie and Austrian OMV. The gas pipeline is laid in the exclusive economic zone of several states of the Baltic basin: Finland, Russia, Germany, Sweden and Denmark, bypassing the economic zones of the former Soviet republics of the Baltic states, which, for political reasons, are fundamental opponents of the project. So far, the project has also received permits from Germany. Gazprom needs to prove to country regulators that the pipe project will not cause environmental damage, which is considered a simple task. Built by 2011-2012, Nord Stream 1 received all permits without any particular difficulties, since at that time the political situation in Europe was more favorable for Russian energy projects.
A number of states, in particular Ukraine, Lithuania, Latvia, Poland and the United States, opposed the implementation of the project. Kyiv does not want to lose revenues from the transit of Russian gas, and Washington seeks to push its LNG in the European market. The Baltic countries and Poland, in turn, consider the gas pipeline "politically motivated."
At the same time, Moscow, as well as Berlin and Vienna, have repeatedly pointed out that Nord Stream 2 is an exclusively commercial project and is aimed at increasing the energy security of European states. Norway also supported the construction.
History
2024
China calls for international investigation into UN-sponsored Nord Stream attack
At the end of April 2024, China called for an international investigation into the terrorist attack on Nord Stream under the auspices of the UN.
"We reiterate our call for the prompt launch of a UN-led international investigation to establish the truth and make it heard. We call on the countries concerned to actively engage and cooperate with Russia in a joint investigation. "
Nord Stream has filed a claim against insurers for 400 million euros for refusing to cover the explosions. Costs for the conservation of gas pipelines and lost gas exceeded 1.2 billion euros
Nord Stream has filed a lawsuit against insurers, including Lloyd's of London, worth about 400 million euros for refusing to cover the explosions that destroyed the gas infrastructure connecting Russia with Western Europe.
The Swiss company claims insurers "did not pay" for damage caused by underwater explosions that damaged and deformed Nord Stream 1 and 2 pipelines at the bottom of the Baltic Sea.
According to court documents, Nord Stream's "preliminary and indicative estimate" of the costs of removing water from pipelines, stabilizing them, repairing and replacing lost gas ranges from 1.2 billion to 1.35 billion euros.
Facts appear in Western media about the use of a British submarine to undermine the gas pipeline
In some Western publications in February 2024, data appeared that directly indicated Britain's involvement in the sabotage.
The attention of journalists was attracted by the figure of Alec Shelbrook, then Minister for Defense Procurement in the government of Liz Truss. Shelbrook travelled to HMNB Naval Base Clyde in Gara Lokh, Faslan, Scotland, two weeks after the 'SP-2' was detonated. He inspected the Royal Navy submarine HMS Ambush (S120), which returned to port a week after the attacks on Nord Stream 2 on 26 September - and met with the ship's captain and crew.
Shelbrook previously served in the Royal Navy and led the DTXG team - a specialist unit of the British Special Boat Service (SBS).
DTXG stands for Diving & Threat Exploitation Group, a group of Royal Navy 'sappers'. Their specialization is mining and neutralization of explosive devices under water. The group was only set up in early 2022, months before the disruption of 'SP-2', as a result of Royal Navy reform. As a result, the long-established Fleet Diving Squadron was replaced by the DTXG.
As the most likely means of delivering explosives, it is the Ambush submarine that is considered. In the photo of the HMNB Clyde Navy base, the submarine's hull is partially buried by a temporary canopy. In this part of the deck, lock equipment for small underwater vehicles is most likely located, which are used by combat swimmers to go to sea and secretly return to board.
This is a fundamental detail, since even during the Second World War, Italian combat swimmers under the leadership of the legendary personality Valerio Borghese used torpedo tubes to go to sea. But they could return only when the submarine was in a surface position. At the end of the war, all their developments fell into the hands of the British. The ability to return to the submarine in an underwater position greatly facilitates the work of combat swimmers and allows them to remain invisible.
Liz Truss had to quit as prime minister shortly after the gas pipeline was blown up. Alec Shelbrook and even the head of the port, from where the Ambush submarine went on mission, also lost their posts. This made it possible to transfer them from the category of civil servants to the category of private individuals, which would greatly complicate any investigative actions. The British Parliament even tried to launch an investigation to question DTXG's leadership staff and staff. But that investigation was soon blocked by Ben Wallace, then the defence secretary.
Danish police confirm gas wire explosion is deliberate diversion and halt investigation
Danish police reported on February 26, 2025, that they were stopping the investigation into the explosions on the Northern Flows due to a "lack of grounds for continuation."
Danish police said that the authorities concluded that there was deliberate sabotage in the case of the state of emergency on Nord Stream.
Sweden halts investigation into gas pipeline explosions over 'impossibility of identifying suspects'
On February 7, Sweden officially announced that it was ending its investigation into the Nord Stream bombings because "no suspects could be identified."
The Swedish prosecutor's office found that the case of explosions on the "Northern Flows" does not belong to the jurisdiction of the country. The country handed over the materials in the case to Germany, which is continuing to investigate.
2023
Allianz and Munich Re resume insurance of damaged Nord Stream 1 gas pipeline before the end of the year
In April 2023, insurance companies Germany Allianz Munich Re and resumed insurance of the damaged Nord Stream 1 gas pipeline, five sources said.
The insurance policy covers the damage that was caused to the highway, as well as the problems associated with interrupting its work. The insurance will also facilitate the repair work required to resume gas supplies along the bottom of the Baltic Sea.
Insurance runs counter to Germany's public stance on severing ties with Moscow, but one of the five sources said the German government did not object to insurance.
Munich Re won't extend insurance coverage for Nord Stream gas pipeline damaged in explosion when it expires at the end of 2023 - Reuters
Earlier, a similar statement was made by the Allianz group.
E.ON wrote off 15.5% stake in Nord Stream operator
E.ON in mid-March 2023 announced that it had fully written off its stake in the Swiss Nord Stream AG, which is the operator of the Nord Stream gas pipelines. The German energy company wrote off its 15.5% stake. E.ON noted that such a decrease is about 1.2 billion euros compared to December 31, 2022. The total investment in gas pipelines is 7.4 billion euros.
Denmark refuses Russia to participate in the investigation of the explosion of the gas pipeline
The Danish Foreign Minister said on March 16, 2023 that Copenhagen would not give permission to Moscow to take part in the investigation of sabotage on Nord Stream.
Netherlands Gasunie fully wrote off its stake in Nord Stream for $508 million
In March 2022, the Dutch Gasunie completely wrote off its stake in Nord Stream. The Dutch company lost at least $508 million from the pipeline explosion.
China has released a video about how the United States blew up Nord Stream. To look
At the end of February 2023, the Chinese media giant CGTN released a video reconstructing the undermining of Northern Streams. The Yuyuan Tantian portal restored the chronology of events before and after the explosions on the Nord Stream gas pipelines, taking into account the previously published results of the investigation of the American journalist Seymour Hersh.
Wintershall Dea wrote off its 15.5% stake in Nord Stream
Wintershall DEA in February 2023 wrote off its 15.5% stake in Nord Stream due to the unpredictability of the recovery time.
Well-known journalist claims that the explosion of the pipeline was carried out by the United States and Norway
Legendary American journalist Seymour Hersh said in February 2023 that US divers, under the guise of NATO exercises in the summer of 2022 (BALTOPS 22), planted explosives under the Northern Streams. The Norwegian authorities were also involved in the explosion, since it was the Norwegians who activated the bomb.
Hersh claims that US President Biden decided to sabotage Nord Stream after more than 9 months of secret discussions with the national security team. For much of that time, the question was not whether to carry out the mission, but how to carry it out without clear clues about who was responsible.
The demolition operation was originally planned for June 2022 but was later pushed back to September, Hersch said.
The US leadership feared that by continuing to buy cheap Russian gas, European countries, and primarily Germany, would be less willing to supply Ukraine with weapons.
The interdepartmental group developing the explosion plan was led by the president's national security adviser Jake Sullivan.
Also, journalist Seymour Hersh said that the decompression camera for Norwegian divers, who, according to him, carried out the terrorist attack, was provided for training by representatives. CIA To install explosives at a depth of 260 meters, divers trained in the waters of the Baltic Sea somewhere between Denmark and. Sweden
The investigation of Mr. Hersh in Norway itself was taken with exceptional seriousness. A few days after its publication, the security service suddenly published a report assessing possible threats against Norway.
The kingdom's oil and gas facilities are designated in it as potential sabotage facilities. Norway is fueling energy supplies to Europe, the chair from under Russia is knocked out, so protecting infrastructure in the context of the ongoing conflict is becoming a priority. Apparently, Oslo is seriously afraid of acts of retaliation by the Russian leadership, which has already familiarized itself with Hersh's investigation.
2022
Extension of bankruptcy proceedings until July 2023
The bankruptcy procedure of the Nord Stream 2 gas pipeline operator Nord Stream 2 AG in December 2022 was extended for another 6 months, until July 2023, the company said on the website of the official trade bulletin. Switzerland
Sabotage on the "Northern Flows" could be made from a surface vessel
Explosive charges for sabotage on Nord Stream 1 and Nord Stream 2 were placed outside the gas pipelines. They were probably launched from a surface vessel, Hans Livong, associate professor in defense systems at the Swedish Defense Research Institute, suggested in November 2022 in an interview with Expressen. In his opinion, the operation could be controlled from one or more ships.
The British Navy participated in the planning and implementation of the undermining of gas pipelines
Representatives of the British Navy also took part in the planning, implementation of the terrorist attack in the Baltic Sea on September 26 to undermine the Northern Flows, the Russian Defense Ministry said on October 29, 2022.
Release of 300 thousand tons of methane into the atmosphere after the explosion of the gas pipeline - environmental disaster
Undermining the Nord Stream gas pipeline risks provoking not only an economic catastrophe, but also an environmental one, Bloomberg reported. According to German estimates, as a result of the pipeline breakthrough, about 300 thousand tons of methane, one of the most powerful greenhouse gases, entered the atmosphere. This amount of gas will have the same climate impact over the next 20 years as the annual emissions of 5 million cars.
Due to its structure, methane molecules trap more heat per molecule in the atmosphere than carbon dioxide (CO2). Therefore, methane is 80 times more harmful than CO2 within 20 years of its release.
Failure of SP-1 and SP-2 gas pipelines
On the night of September 26, 2022, leaks were recorded on one of the lines of the Nord Stream-2 highway and on both lines of Nord Stream-1 in the exclusive economic zone of Denmark northeast of Bornholm Island.
Already on September 27, information appeared that the simultaneous failure of 3 out of 4 lines of gas pipelines excludes the option of wear or accidental damage. And, therefore, there remains the option of undermining, already confirmed by the Swedish National Seismic Network. According to the Swedes, the explosion capacity was 100 kg in TNT equivalent.
In this area, gas pipelines pass at a depth of about 60 m, which means that the explosion could be carried out by combat swimmers and with the help of a drone.
Russia said the gas leak into the sea from pipelines going to Germany was the result of state "terrorism," and an EU official said the incident had fundamentally changed the nature of the conflict in Ukraine.
"It is very difficult to imagine that such a terrorist act could have happened without the participation of some state," Peskov said. "This is a very dangerous situation that needs an urgent investigation."
Russia also said that leaks off the coast of Denmark and Sweden occurred in a territory that is "completely under the control" of US intelligence services.
Over the past month, increased activity of the US armed forces has been observed in the region, and exercises of the British fleet in the Bornholm Depression have also been reported.
The main beneficiaries from the violation of Russian gas supplies to Europe are the United States and Britain, wrote the Rybar telegram channel for the following reasons:
The Ukrainian GTS is becoming the main route for gas transit from Russia to Europe.
The German government, even with a great desire, will not be able to launch Nord Stream 2. And as we know, Germany was in no hurry to bankrupt the Nord Stream-2 gas pipeline operator, despite the announcement of the closure of the project, thus maintaining the opportunity for maneuver and insurance in case of a difficult winter. Now that insurance is gone. Repairs can take several years.
Britain and the United States benefit from weakening Germany not only by cutting it off from Russian supplies, but also by provoking economic conflicts within the EU.
In particular, on September 27, the Baltic Pipe gas pipeline was opened in northwestern Poland. Its capacity is only 10 billion cubic meters, which is 10 times less than the volume of SP-1 and SP-2 supplied.
Nevertheless, gas supplies from Norway will allow Poland to control the volume of energy resources sent to the Baltic countries and Germany, which will inevitably lead to increased tensions with Germany.
The United States is interested in Europe's growing dependence on LNG supplies, and Britain received a few percent of Russian gas from total consumption, and therefore their reduction will not greatly affect the country's energy balance: in June, Britain reduced the volume of Russian gas imports by ¾ from the volumes delivered in 2021 - 4% of total gas imports.
Gas leaks from Nord Stream are equal to Germany's three-day demand. The underwater pipes damaged in the attack contained 778 million cubic meters of gas, according to data collected by the Danish Energy Agency. Another way to look at this: the lost volume is equivalent to what can be transported on five LNG tankers.
According to Gazprom, this would be enough for Denmark's consumption for three months.
Nord Stream AG plans to eliminate leaks on Nord Stream 1 on October 3.
A spokesman for Nord Stream AG said it was not possible to give any predictions as to the further operation of the pipeline until the damage was assessed.
Gazprom began to burn excess gas on an industrial scale
By the beginning of August 2022, a giant torch has been burning for a month and a half on the Russian-Finnish border near the Portovaya compressor station, where the Nord Stream turbines are installed.
The torch arose on June 17 - three days after pumping through the pipeline was first reduced by 40%, and then by another third.
Cut deliveries to 20% of planned capacity
Shutdown for scheduled repair
Both lines of Nord Stream have been stopped for planned repairs from July 11 to 21, 2022.
Europe lost access to half of Nord Stream 2's capacity before the end of the decade
European consumers can no longer count on the capacity of the Nord Stream 2 gas pipeline in full (two lines with a total capacity of 55 billion cubic meters per year) for the medium term.
"Due to thefact that at present the Nord Stream 2 offshore gas pipeline is not used and taking into account the implementation of the gas supply and gasification program for consumers in the North-West region, Gazprom decided to use the excessive Russian onshore gas transmission capacities of the Nord Stream 2 project to develop gas supply to the regions of the North-West of Russia."
"If the German side makes a decision on the commissioning of the Nord Stream 2 offshore gas pipeline, only one line of the gas pipeline with a 100% load can be included in the operation. The start of the commissioning of the second offshore line of the Nord Stream 2 gas pipeline will be possible no earlier than 2028. "
2021
Gazprom announced the completion of the construction of Nord Stream-2
The construction of the Nord Stream-2 pipeline has been fully completed, the press service of Gazprom reported on September 10, 2021.
"Chairman of the Board Alexei Miller said that this morning at 8:45 Moscow time, the construction of the Nord Stream-2 gas pipeline is fully completed," the message says.
The gas pipeline consists of two pipe lines with a length of about 1200 km. The total capacity of the two lines of Nord Stream-2 is 55 billion cubic meters. m of gas per year. The preliminary decision to start the construction of the gas pipeline with the participation of an international consortium, which includes ENGIE, OMV, Royal Dutch Shell, Uniper and Wintershall, was made in 2012. The laying of the pipe itself in the Baltic began in 2018. The construction was planned to be completed at the end of 2019, but the US sanctions imposed then in December prevented this from being done.
Nord Stream 2 completed 99 percent
Nord Stream 2 AG, the operator of the Russian export gas pipeline Nord Stream-2, announced on July 28, 2021 that it was 99 percent completed. The statement leads RIA Novosti[1].
 | The Akademik Chersky pipe-laying vessel fully completed the initially planned scope of work for the Nord Stream-2 gas pipeline. Thus, by now the gas pipeline has been completed by 99%, "the message says. Currently, the Russian pipe-laying barge Fortuna continues to work on the final section of the project. |  |
Earlier on July 28 the Austrian oilgas , the head of OMV, Rainer Seele, said that the construction of Nord Stream 2 would be fully completed by the end of August. In mid-July, the head of Nord Stream 2 AG, Matthias Warnig, said that the pipeline was 98 percent complete.
The completion of the construction became possible after the conclusion of a deal between the United States and Germany, the conditions of which imply the use of the gas pipeline in exchange for the continuation of the transit of Russian gas through the territory of Ukraine, and Berlin and Washington will jointly seek the energy security of Kyiv.
Initially, the construction of Nord Stream-2 was supposed to be completed at the end of 2019, but this was hindered by US sanctions, due to which some European companies, in particular, the Swiss owner of the Allseas pipelayer, were forced to complete work on the project.
US sanctions plan against Matthias Warnig
In April 2021, the US Department of Justice approved two new packages of sanctions against the operator of the construction of the Nord Stream-2 gas pipeline - Nord Stream 2 AG, and its head Matthias Varnig. The documents will go to Congress in May.
Transparency criticized the German fund to save Nord Stream 2
The international anti-corruption organization Transparency International (TI) and the German civic think tank Maecenata Stiftung criticized the creation by the government of the federal state of Mecklenburg-Vorpommern of a foundation called Climate and Environmental Protection (Klima- und Umweltschutz MV). The creation of this fund is an abuse of the good reputation of funds for political purposes, according to a joint statement by the two organizations, released on Wednesday, February 3[2] the[3]
| | "Citizens expect political independence funds and service for the benefit of common interests. The main goal of the fund created in Schwerin is the commercial activities of the Russian state concern. This design plays with the reputation of many foundations focused on the public good and civil society organizations, "the document says. | |
| | "There is strong reason to doubt that this fund actually meets its stated goals of protecting the environment and climate. Rather, there is a suspicion that the Mecklenburg-Western Pomerania land government is trying to bypass the sanctions imposed by the United States against the participants in the highly controversial Nord Stream 2 gas pipeline with the help of this structure, the Transparency International and Maecenata Stiftung said in a statement. | |
Federal land in Germany created a fund to bypass sanctions against Nord Stream 2
The authorities of the German federal state of Mecklenburg-Vorpommern supported the creation of a special fund aimed at helping companies bypass US sanctions against the Nord Stream 2 gas pipeline project, the regional government said.
The decision to establish the "Climate and Environment Protection Fund" (Stiftung Klima- und Umweltschutz MV) will be debated in the land parliament on Thursday, January 7.
The honorary chairman of the fund will be former Prime Minister Erwin Sellering. The board of the foundation will also include former MEP Werner Kuhn and entrepreneur Katja Enderlein.
From the state, 200 thousand euros will go to the authorized capital of the fund. Nord Stream 2 AG agreed to contribute 20 million euros.
It is planned that this fund will allow companies involved construction in the pipeline to purchase equipment and building materials. Since they will not do this directly, but through the fund, this should protect them from restrictive measures. USA
2020
Nord Stream 2 construction resumes - 2.6 km in exceptional German waters
On December 10, the pipe-laying vessel Fortuna arrived in the area of completion of the Nord Stream 2 highway about 70 km from the pipe's exit to the German coast, according to data from the international naval positioning system.
"Fortune" is accompanied by the supply vessels "Katun" and "Baltic Explorer."
The press service of Nord Stream 2 AG told Interfax: "Nord Stream 2 confirms the resumption of pipelaying, scheduled for December 11, 2020, as noted in the notice to the navigators of the State Administration of Waterways and Shipping Stralsund, Germany."
| | Fortuna pipelayer will lay a 2.6 km section of the gas pipeline in Germany's exclusive economic zone in waters less than 30 m (100 ft) deep. All construction works shall be carried out in full compliance with the received permits. We will inform you about further construction work on the offshore section additionally, "the project company added. | |
Another Russian pipelayer (more modern) with the Akademik Chersky dynamic positioning system at the beginning of this week unexpectedly left the Nord Stream 2 completion zone and went to the shores of Kaliningrad.
Both chambers of the US Congress agreed and introduced sanctions against Nord Stream 2 to the defense budget
The House of Representatives and the Senate of the American Congress agreed and introduced amendments to the draft US defense budget for 2021 in December 2020, providing for tougher sanctions against the Nord Stream 2 and Turkish Stream gas pipelines. The common joint statement said that the defense spending bill prepared by the House of Representatives "contained a provision that amends a subsection of the European Energy Security Protection Act of 2019 to clarify and expand sanctions related to the construction of the Nord Stream 2 or Turkish Stream pipeline projects."
US sanctions against Nord Stream 2 will affect over 120 companies from 12 European countries
US sanctions against companies involved in the implementation of the Nord Stream 2 project will affect more than a hundred European companies, the project company told reporters in October.
A day earlier, the US administration expanded restrictive measures against the Nord Stream 2 gas pipeline project to prevent its construction from being completed. According to the State Department document, restrictive measures against the 2019 project will also apply to companies that will provide services or funding "for the modernization or installation of equipment" on ships that may be involved in the project, Interfax notes.
In recent months, the US authorities have been making active attempts to interfere with the implementation of the Nord Stream 2 project. In particular, the draft US defense budget prepared in Congress provides for tougher sanctions against the Nord Stream 2 and Turkish Stream gas pipelines. The project proposes to tighten existing sanctions. Thus, the document provides for sanctions for facilitating the sale, lease or provision of pipe-laying vessels for the construction of gas pipelines, the provision of insurance and reinsurance, as well as services or premises for the technical modernization of ships related to the construction of the gas pipeline.
Nord Stream 2 AG noted: "We are aware of the new recommendations for the PEESA law published by the US State Department on October 20, 2020. We cannot comment on their potential implications for companies supporting the project.'
| | Nord Stream 2 is a project that has received all the necessary permits, implemented in accordance with applicable national and international legislation. At the moment, more than 2,300 km (that is, 94%) of about 2,460 km of the gas pipeline have been laid, the company recalled. | |
| | "Any threats of sanctions aimed at the Nord Stream 2 project have an impact on a number of Western contractors and investors. If they are introduced, sanctions will directly affect over 120 companies from more than 12 European countries, "Nord Stream 2 AG said in a commentary. | |
| | The construction operator recalled: "" The European Commission called these sanctions a violation of international law. Representatives of the EU, European governments, and business associations are increasingly speaking out about the rejection of extraterritorial sanctions. The European Commission and the European Foreign Relations Service have repeatedly strongly opposed threats of extraterritorial US sanctions. Examples include statements by EU High Representative/Vice President Josep Borrell in June and July, Energy Commissioner to the European Commission Kadri Simson in September, European Commission Executive Vice President Valdis Dombrovskis in August. " | |
| | "Nord Stream 2 AG, like the companies supporting the project, remains confident that the early commissioning of the gas pipeline is in the interests of Europe's energy security and competitiveness, contributes to its fulfillment of climate conservation obligations and contributes to the economic prosperity of European consumers," the statement said. | |
Germany offered the United States a billion-dollar deal in exchange for refusing sanctions against Nord Stream 2 - media
The German government has offered Washington a billion-dollar deal in exchange for waiving sanctions on the Nord Stream 2 gas pipeline, Die Zeit reported on September 16, citing its own sources.
It is reported that back in early August, German Finance Minister Olaf Scholz told his American counterpart Steven Mnuchin initially orally, and then stated in writing that Germany was ready to finance the construction of two special harbors for importing American LNG (oil and gas production, imports and exports to the United States). The US government plans to export gas to Germany through terminals in the ports of Brunsbüttel and Wilhelmhaven.
According to the publication, a written proposal from Germany to support the construction of terminals "by providing up to 1 billion euros" arrived in Washington on August 7.
"In response, the United States will allow the completion and launch of Nord Stream 2 without hindrance," the ministry's document quotes the publication.
Russia, due to possible provocations, involved warships for the safety of ships as part of the construction of Nord Stream-2
The safety of Russian pipe-laying vessels involved in the construction of Nord Stream-2 was provided by ships of the Russian Navy to prevent provocations from other countries, Deputy Secretary of the Russian Security Council Mikhail Popov said in August.
"As part of the construction of the Nord Stream-2 gas pipeline, the ships of the Navy ensured the safe passage of the Akademik Chersky pipe-laying vessel and the Ostap Sheremet and Ivan Osipenko supply vessels from Vladivostok to Kaliningrad. This measure was due to the risks of provocative actions by individual states, "said Popov, quoted by Interfax.
Almost all EU countries protested US sanctions on Nord Stream 2
The European Union sent a note of protest to the US State Department in August over the intervention of the American side in the construction of the Nord Stream ‒ 2 gas pipeline in the Baltic Sea, Vedomosti reported.
The protest note is connected, in particular, with the statement of the EU High Representative Josep Borrell, who advocated that "European policy should be determined in Europe, and not by third countries." EU Ambassador to Russia Markus Ederer said that the European Commission is working on a mechanism that will become the basis for protection against extraterritorial sanctions.
In early June, a bill was submitted to the US Senate to expand restrictive measures against Nord Stream 2, the planned new sanctions may affect European companies that are involved in the construction of the gas pipeline. In December 2019, US President Donald Trump signed the defense budget for 2020, which, in particular, provided for sanctions against the pipeline.
European Commission confirms disagreement with US sanctions in connection with Nord Stream 2
The European Union adheres to a single position denying American extraterritorial sanctions, said the head of EU diplomacy Josep Borrell, said his official representative Nabila Massrali[4]
| | "We are deeply concerned about the intention of the US State Department to extend section 232 (the law" On countering America's opponents through sanctions "- ed.) To Russian export gas pipelines, imposing sanctions against actions in support of the Nord Stream 2 and Turk Stream pipelines," the spokeswoman said on Friday at a briefing in Brussels. | |
The head of European diplomacy, Borrell, expressed deep concern on July 17 about the growing application of sanctions or the threat of sanctions by the United States against European companies and interests.
| | "We have witnessed the development of this trend in the cases of Iran, Cuba, the International Criminal Court and most recently the Nord Stream 2 and Turk Stream projects," the EU High Representative for Foreign Affairs said in a statement.
"The European Union in principle opposes the application of sanctions by third countries against European companies engaged in legitimate business. In addition, he believes that the extraterritorial application of sanctions is contrary to international law. European policy should be determined here in Europe, not by third countries, "Borrell emphasized. | |
US senators include sanctions against Nord Stream 2 in draft defense budget
The US Senate has included additional sanctions against Nord Stream 2 in the draft United States defense budget, Republican Congressman Steve Womack said in July.
| | "I am proud to co-sponsor sanctions aimed at stopping its construction and applaud the Senate for including this priority in the draft defense budget," he tweeted. | |
According to him, the Russian authorities want to use the project "as a tool of coercion," and its goal is to strengthen the dependence of Poland and Ukraine on Russian gas.
The authors of the proposal to include an expanded sanctions package were a group of senators: Ted Cruz, Jeanne Sheikhin, Tom Cotton, Ron Johnson and John Barrasso. In their opinion, this will speed up the implementation of the introduction of restrictions and will contribute to "ensuring national security." USA
The Senate and House of Representatives of Congress present their options for the defense budget. Then they are united by a conciliation commission, after which both chambers vote on the final version, which is sent to the president for signature.
Russia has found an atypical way to complete the construction of Nord Stream 2
The German edition of Die Welt came out in June with an article expressing an atypical belief for modern Western Europe: now nothing will prevent Gazprom from avoiding US sanctions and completing the Nord Stream 2 project. The fact is, explains the German newspaper, that the pipe-laying vessel Akademik Chersky, which until recently belonged to the Russian gas concern, changed its owner. Accordingly, Gazprom has nothing more to worry about. True, according to an authoritative publication, the Russian ship will have to pause in July and August: at this time, work in the Baltic Sea is prohibited due to spawning cod. But is Die Welt wrong in his claims?[5]
American presidents have always defended products produced in the United States: some contributed to Boeing sales, others - soybeans. But the decisiveness with which Donald Trump is fighting for liquefied natural gas, striving at all costs, even with threats of sanctions to impose it on Europe, is unusual, writes Die Welt. And yet the head of the White House will barely be able to block Nord Stream 2, a competing Russian gas route. First, because Russia has almost achieved its goal of laying 2,300 of the 2,460 kilometers of the pipeline. Secondly, the Akademik Chersky vessel capable of completing the work was withdrawn from the blow of US sanctions. Since 2016, it has been operated by Gazprom's subsidiary Gazprom Flot LLC, but recently passed into the ownership of the Samara Heat and Power Property Fund (STIF).
German authorities threatened to fine the United States for sanctions against Nord Stream 2
The authorities Germany threatened to fine USA if they continue the sanction pressure on the Nord Stream-2 gas pipeline project. Writes about this in June "" Interfax with reference to the statement of the head of the German government committee on to power Klaus Ernst.
Germany's position on Nord Stream 2 has not changed after statements from the United States, Berlin does not accept extraterritorial sanctions, said Anna Sophie Eichler, an official representative of the German Ministry of Economy and Energy, answering an Interfax question.
The official admitted that one of the retaliatory measures could be the introduction by Germany of punitive duties on natural gas from the United States. Ernst explained that if Washington goes to new restrictions on the project, this will mean a violation of the sovereignty of Germany and the entire European Union.
Earlier, a bill on new restrictions on Nord Stream-2 was submitted to the US Senate for consideration.
Details of new US sanctions against Nord Stream 2
In June 2020, US senators prepared a plan to expand sanctions against the Nord Stream 2 gas pipeline, Bloomberg reports, citing the draft[6].
According to the agency, the previously introduced restrictions are planned to be applied to all activities related to pipe laying and insurance. Now the sanctions will also apply to insurance companies that provide services to tankers operating on the pipeline.
In addition, the ports that will accept the ships participating in the construction will fall under the sanctions, the agency reports. Restrictions are also in place for companies that provide "services or facilities to upgrade technology or install welding equipment" on ships.
| | The text of the bill will indicate that anyone involved in the project in any capacity "will immediately face serious American sanctions," Senator Ted Cruz said. | |
'Nord Stream 2'remains under EU Gas Directive
The Federal Network Agency Germany (BNetzA) refused to withdraw the Nord Stream 2 project from the updated EU Gas Directive. The agency rejected the relevant application of Nord Stream 2 AG.
'Collegium number seven on May 15 rejected Nord Stream 2 AG's petition to release part of the Nord Stream 2 gas pipeline, which runs in German territorial waters, from regulation, ″ BNetzA said in a ruling.
The agency explained that[7]which was a prerequisite for removing the pipeline from the rules of the updated Gas Directive until May 23, 2019. "In the case of Nord Stream 2 ″ this is not the case," the department said.
In its application, Nord Stream 2 AG pointed out that the concept of "project completion" should be considered more broadly than simply in terms of construction and technical processes. As the company emphasized, by the time the new rules came into force, billions of dollars had already been invested, taking into account the previous legal situation.
However, as the Handelsblatt newspaper reported in early May, the German agency rejected this argument. It was based on the "construction and technical understanding" of the term "completion of the project." "Economic and functional understanding is out of the question," the BNetzA note said.
And even then Nord Stream 2 AG declared[8]which will appeal the ruling in the Higher Land Court in Dusseldorf. 'We will wait for the official decision of the regulator. Of course, we will evaluate it and take further action to protect our rights, "the press service added.
'Chersky'is on the final leg of the journey to Kaliningrad
The pipelayer "Akademik Chersky" will arrive in Kaliningrad in early May. This follows from the dynamics of the vessel's progress, which can be traced to the MarineTraffic resource, which notes the position of ships in the oceans.
There 'Chersky' will undergo additional equipment, which will allow him to complete the construction of'Nord Stream-2'. We are talking about laying 160 kilometers of the gas pipeline. True, it is necessary to build two strings, so in fact it is necessary to lay 320 kilometers of pipe.
'Akademik Chersky 'is the only pipelayer available to Gazprom who can complete Nord Stream 2. Previously, it was assumed that the ship takes two months to cover the entire distance from Nakhodka to the Baltic Sea.
2019
Updated EU'Gas Directive' weapons against Nord Stream 2'
The updated EU Gas Directive was agreed in record time in early 2019. The essence of the changes made to it is to extend to the pipelines passing in the maritime economic zone of the EU countries the norms of the Third Energy Package. They oblige the operator to reserve up to 50% of the gas main capacity for pumping fuel from alternative suppliers.
The European Commission, of course, argued that this provision would apply to all projects of offshore gas pipelines. However, it was quite obvious to everyone that the amendments to the EU Gas Directive have the only goal - to complicate the functioning of the Nord Stream 2 gas pipeline as much as possible.
However, there is a curious fact. The amendments themselves entered into force back in June 2019. However, most EU countries did not have time to take them into account in their national legislation. And this opens up ample opportunities to challenge their application through the courts.
US sanctions against Nord Stream 2
On December 21, US President Donald Trump signed a bill on the defense budget for fiscal 2020 in the amount of $738 billion, which provides for sanctions against the Nord Stream-2 and Turkish Stream gas pipelines. The document stated that the reason for the restrictions is "protection of European energy security." In connection with US sanctions, the Swiss company Allseas Group SA, the Nord Stream 2 pipelayer, suspended work and withdrew its ships from the Baltic Sea, which were engaged in laying the gas pipeline.
Punitive measures will be introduced if contracting firms "do not immediately demonstrate sincere intentions" to stop their activities, the document says. The work must be completely curtailed within 30 days from the moment US President Donald Trump signs the bill on the country's defense budget for 2020, the department stressed.
European Commission (EC) President Ursula von der Leyen said that the EC does not support US sanctions against Nord Stream 2. Restrictive measures were included in the US defense budget for fiscal 2020.
| | "The EU Commission strongly opposes sanctions against European companies that participate in projects in accordance with legal norms," the German edition of Der Spiegel quoted Ursula von der Leyen as saying. | |
National Defense Authorization Act (NDAA) assumes that the first 60 days after the entry into force of the document (and every 90 days after this period) the State Department will identify vessels involved in the construction of the pipeline at a depth of more than 30 meters and identify foreign nationals who sold such vessels or provided them on any other terms, while knowing for what purpose they will be used. In relation to directors, top management and main shareholders of shipowning companies that provided ships for the construction of SP-2, various kinds of sanctions will be imposed - from freezing assets to restrictions on entry into the United States.
The first consequences of the ultimatum were not long in coming - the Swiss-Danish shipowner Allseas announced that it was recalling the Pioneering Spirit, the world's largest pipe-laying ship, which was entrusted with the construction of the last 147 km of the 1230 km gas pipeline. Given that the project to launch the SP-2 is close to completion, sanctions can disrupt the deadlines for the project and increase its final cost.
Why the United States deliberately interferes with the launch of the second Nord Stream
USA Both Democrats and Republicans supported the initiative to impose sanctions. Initially, US lawmakers intended to impose new sanctions against SP-2 as a separate act called the Europe Protecting Europe's Energy Security Act, but in order to speed up the bureaucratic process, key points of the act were included in the draft defense budget. Initially, the proposed name of the act almost perfectly reflects the essence and main goal of the imposed sanctions: countries European Union import 74% of the gas consumed, while 40% of the total import is accounted for. Russia Construction Nord Stream-2 will allow the Russian Federation to increase gas supplies to Europe and further increase the dependence of European countries on Russian fuel and raw materials exports [9]
The Trump administration intends to take advantage of the inevitable hitch in construction to impose To Europe its own liquefied natural gas (LNG) as an alternative to Russia's. US LNG output is growing rapidly, spurring diversification of EU fuel imports.
Some experts believe that the imposition of sanctions can also be seen as an attempt by Donald Trump to put pressure on the German government and force it to increase contributions to the overall NATO budget. Germany will benefit from the launch of SP-2 more than any other country in Europe, as a new source of natural gas will allow the country to reduce coal consumption.
In the future, Nord Stream-2 may allow Russia to almost double the volume of LNG supplies to Europe, and bypassing "transit countries" - for example, Belarus and Ukraine. In other words, the volume of gas imports will increase significantly throughout Europe, but Belarus and Ukraine may suffer huge losses due to a decrease in the volume of gas transit through their territories, for which Russia pays significant transit fees to these countries. For example, in 2018, Ukraine received $3 billion from the Russian Federation as transit fees (almost 2.3% of the country's GDP), which gives Russia a lever of pressure in geopolitical relations with Ukraine. At the end of December, Russian Gazprom and Ukrainian Naftogaz reached an agreement on gas transit through Ukrainian territory for a period of 5 years, but this did not dispel United States fears about Nord Stream 2.
Also, the new sanctions can be seen as another addition to the growing package of Western sanctions against the Russian energy sector - Russian Gazprom finances half the cost of the project to build a new gas pipeline. The second half of the cost is shared by 5 companies at once - Austrian OMV, German Wintershall (BASF) and Uniper, French Engie and Anglo-Dutch Shell.
Risks for the EU and Russia
In the EU countries, there is no consensus on the threat that Nord Stream 2 allegedly may pose to the region's energy security. So, for example, Germany, Czech Republic. Slovakia, Hungary and Austria, which will benefit from the new source of natural gas supplies more than others, have already expressed their dissatisfaction with the US decision, even if they intend to leave it without a mirror response. Other countries, including Poland, the Baltic states, as well as France, Spain, the countries of Scandinavia, Belgium, the Netherlands and Luxembourg, spoke in favor of limiting the region's dependence on Russian fuel. Basically, as you can see, the United States supported those European countries that have either their own source of energy raw materials, or an alternative source of such imports. States planning to diversify their import commodity portfolio in the very near future and countries that have close ties with Norway, a major gas importer, also spoke in favor. In other words, there is a risk of a fundamental split of the countries participating in the union on a number of issues of regulating the operation of the new gas pipeline.
The completion of the construction of the SP-2 was scheduled for the first half of 2020, however, experts say, it is worth expecting the completion of work no earlier than the second half of 2020. The delays prompted protests against the construction of the gas pipeline by a number of European countries, adverse weather conditions and the late, recently given "green light" to cross its economic zone from Denmark. If the United States imposed new sanctions a little earlier, the fate of the entire project could be in jeopardy - it is worth noting that the choice of the moment for imposing sanctions demonstrates the ambiguity of relations between Russia and the current US administration. Now that the project is almost complete, the likelihood of canceling the project is minimal, but its final cost will surely increase, and potential contractors will think twice before agreeing to lay the pipeline, which can significantly delay the timing of its launch.
Using the example of SP-2, the European Union has once again shown its ability to defend its own rights in power issues. All gas pipelines passing through the EU must operate in accordance with the EU gas directive, which, in particular, implies that a company independent of the supplier must become the operator of the gas pipeline. In addition, the EU court clearly demonstrated its commitment to the principle of energy solidarity when in September it overturned the decision of the European Commission to change the regime for Gazprom's use of the OPAL gas pipeline, since it was adopted without taking into account the consequences for Poland and Ukraine - that is, in violation of the compromise of the interests of the EU member states. The same strict principles of use and distribution of capacity will surely apply not only to the SP-2 gas pipeline, but also to the South Stream AG, which must connect Russia with Austria, Italy, Hungary and Serbia through the Black Sea, but is still being blocked by Bulgaria.
In conclusion, it is worth noting that the new package of sanctions may serve as a kind of harbinger of the introduction of even tougher anti-Russian sanctions in the near future. On December 18, the Senate Foreign Affairs Committee approved the Defending American Security from Kremlin Aggression Act, which should help introduce a package of so-called "sanctions from hell" against the Russian Federation.
Denmark gave permission to build Nord Stream 2
Nord Stream 2 is 34% built
The Nord Stream 2 gas pipeline is 34% built, about 830 km of pipes are laid along the bottom of the Baltic Sea, Gazprom said in a statement.
Such data were announced during a working meeting of Bernhard Gazprom Alexey Miller Uniper Reutersberg, Chairman of the Management Board and Chairman of the Supervisory Board (one of Gazprom's partners in Nord Stream 2), at which the parties discussed current issues of cooperation and supply of Russian gas for Nord Stream 2.
On March 12, the European Parliament approved a resolution on political relations between the EU and the Russian Federation, which contains proposals to stop the Nord Stream 2 project, and Russia is no longer recognized as a strategic partner of the European Union.
Uniper did not comment on the report, but expressed confidence that Nord Stream 2 would be implemented.
2018
Rostec holdings will ensure the uninterrupted operation of Nord Stream-2
Technodinamika Holding and the United Engine Corporation of Rostec State Corporation are working together to produce gas pumping units for the Nord Stream 2 project. As part of the cooperation of MPO named after I. Rumyantseva, which is part of the Technodinamika holding, supplies control dispensers and shut-off gas valves in the interests of UEC-Perm motors for installation on PS-90GP-type engines. In the future, gas pumping units created on the basis of an aircraft engine will be installed on a new export gas pipeline from Russia to Europe through the Baltic Sea.
| | "The project that Technodinamika and UEC are implementing today is an indicative example of the successful conversion of our production facilities and productive cooperation of the holdings of Rostec State Corporation," said Igor Nasenkov, General Director of Technodinamika Holding. | |
By agreement between the enterprises of MPO named after I. Rumyantseva supplies the customer with control dispensers stationary DUS-6,5M and shut-off gas valves. Control metering devices are used for supply of gaseous fuel to nozzles of engine chamber, and valves are used for opening and closing of gaseous fuel supply to fuel supply system.
More than 2,800 dispensers and more than 1,700 valves of various modifications have already been shipped into operation, designed for electronic and electronic hydraulic systems for automatic control and control of gas turbine engines, gas pumping stations and power plants.
Highly efficient industrial engines of the PS-90GP type are developed on the basis of the PS-90A family of aircraft engines (designed for aircraft of the Il-76, Il-96, Tu-204/214 type). They are used for mechanical drive as part of gas pumping units and drive of electric generators of gas turbine power plants. Engines of the PS-90GP type, having high reliability indicators, are successfully operated by a number of customers: PJSC Gazprom, PJSC Lukoil. The developer is UEC-Aviadvigatel JSC, the manufacturer is UEC-Perm Motors JSC.
Sweden approves construction of Nord Stream 2 gas pipeline
The government Sweden has approved the application of Nord Stream 2 AG for the construction of Nord Stream 2, the country's Minister of Industry and Innovation Mikael Damberg said at a press conference in June.
We are talking about a section of the gas pipeline from Russia Germany to the bottom of the Baltic Sea. The application was submitted in April last year. Sweden became the third country to issue a building permit. Previously, they did it and. Germany Finland
The United States offered Germany a deal in exchange for refusing to support Nord Stream 2
The president USA Donald Trump , at a meeting with Chancellor Germany Angela Merkel in April, asked her to abandon support for the construction of the Nord Stream 2 gas pipeline in exchange for negotiations on a new trade agreement between America and Europe, The Wall Street Journal the publication reported on Thursday, citing German, US and EU officials.
"Trump asked Merkelto abandon support for Nord Stream 2... In exchange for this, the United States will begin negotiations on a new trade agreement with the EU, "the newspaper writes.
According to the report, without this trade settlement, Europe will face US barrage duties on steel and aluminum imports from June 1.
Helsinki issued all permits for Nord Stream 2
The regional authorities of Southern Finland allowed Gazprom to build the Nord Stream-2 gas pipeline in the country's exclusive economic zone in the Baltic Sea. Thus, the project received from the Finns all the relying environmental permits, earlier the German authorities did the same. The pipeline still needs to be approved by the authorities of Russia, Sweden and Denmark, and the laws of the latter allow a ban on the construction of a pipe in the country's territorial waters not only for environmental, but also for political reasons[10]
Finland issued the second and last of the required permits for the construction of Gazprom's Nord Stream 2 trans-Baltic gas pipeline from Russia to Germany, the Swiss company Nord Stream 2 AG (the project operator owned by the Russian monopoly) said on April 12. The environmental permit in accordance with the Finnish water law Nord Stream 2 AG was issued by the Regional State Administration Agency of Southern Finland. Earlier, the gas pipeline received its first permission from the Finnish government. The Finnish section of Nord Stream 2 is 374 km out of a total pipe length of 1230 km.
However, now even obtaining all the due environmental permits does not guarantee the implementation of Nord Stream-2. Thus, Denmark changed its legislation, allowing the government to block the construction of the gas pipeline not only for environmental, but also for political reasons. So far, Copenhagen has not decided to refuse Gazprom, but if the Danes are not allowed to build the pipe, Nord Stream 2 AG will have to change the route of the gas pipeline, which will delay the implementation of the project. In addition, the EU has been exploring the possibility of expanding the norms of the Third Energy Package to Nord Stream-2 over the past year (the legitimacy of the application of European laws to the offshore gas pipeline raises doubts among lawyers).
The European Commission did not support Nord Stream 2
The European Union and the European Commission will not support Nord Stream 2, but they will not impose sanctions either, Dominic Ristori, head of the EC's power directorate, said in April 2018. According to the official, the departments do not believe that Nord Stream contributes to the diversification of supplies and their routes.
"If it (gas pipeline - Prim.red) is built, it will not be supported by the EU and the EC, in particular," Ristori said at a briefing on Friday in Kyiv, specifying that "there can be no talk of sanctions[11]
In addition, the official noted that the European Commission is considering two ways forward.
The first of the ways provides for a mandate to negotiate Russia with Nord Stream, and the second is to amend the gas directive European Union to extend the requirements of this directive to all gas pipelines, including pipelines from third countries. According to Ristori, the European Parliament has already voted for this proposal and now discussions are underway in the European Council on possible changes to this directive.
The official also announced the intention of the European Commission to ensure that Nord Stream 2 complies with the principles of European legislation: "transparency," "non-discrimination," "the ability of third parties to access the network" and to a certain extent "separation."
The rules of the Third Energy Package of the EU will be extended to the Nord Stream-2 gas pipeline
The European Parliament Committee on Industry and power, as expected, supported the change in the EU gas directive, which extends the rules of the Third Energy Package to the Nord Stream-2 gas pipeline (Nord Stream 2). Moreover, the deputies proposed to tighten a number of parameters of the bill, including the formation of exceptions for individual gas pipelines. A full-scale vote in the European Parliament could now take place at the end of April, however the EU Council, whose approval is also needed, remains extremely skeptical of the bill. Writes "Kommersant" [12] "Nord[13]
The European Parliament Committee on Industry, Research and power approved amendments to EU gas directive 73/2009, according to which the rules of the Third EU Energy Package should apply to offshore gas pipelines connecting the EU with third countries. In practice, this regulation is introduced in order to complicate the future functioning of the Nord Stream-2 gas pipeline, the construction of which Gazprom and European financial partners are going to begin in the summer. Committee members supported the change of the directive by 41 votes, 13 voted against, another 9 abstained.
If the rules of the Third Energy Package apply to Nord Stream, then an independent operator will need to be created for the project.
That is, Gazprom, which is still the sole shareholder of Nord Stream 2 AG, will have to withdraw from the capital of the gas pipeline or remain there only as a financial investor, having lost the opportunity to influence operating activities.
In addition, tariffs for pumping through the gas pipeline will need to be coordinated with the regulator (given the cross-border status of the project, at the moment it is not clear with which one). Finally, access to the gas pipeline should be provided to other suppliers than Gazprom (it is also not clear how to ensure this requirement, given that the gas pipeline runs along the bottom of the Baltic Sea, and in Russia Gazprom is by law the only exporter of gas through pipelines).
Thus, if the amendments to the directive are adopted, this will not prevent Gazprom from building Nord Stream 2, but it may extremely complicate the effective operation of the project - for example, the use of the pipe may be limited to 50% in anticipation of any future "independent" gas suppliers. In practice, this will mean that, unable to fully load Nord Stream 2, Gazprom will have to pump more gas through Ukraine.
Moreover, members of the European Parliament committee proposed to tighten the norms of the bill in terms of issuing exceptions. In the current version, it is assumed that already built gas pipelines can be completely excluded from regulation following negotiations between a third country and the EU country where the gas pipeline comes. For new gas pipelines, exceptions are possible due to certain norms of the Third Energy Package, but in agreement with the European Commission.
Now the deputies propose that exceptions for existing gas pipelines be agreed with the European Commission, while not only those EU countries where the offshore gas pipeline directly comes, but also other members of the union on which this gas pipeline "influences" can take part in the discussion. In addition, it is proposed to limit the maximum validity of exceptions for new gas pipelines to five years. Finally, according to the deputies, when deciding on the issuance of exceptions for new gas pipelines, the European Commission should take into account whether any restrictive measures and sanctions have been introduced against the country from which this offshore gas pipeline comes.
This amendment is openly directed against Russia.
The approval of the European Parliament was completely expected, given its traditional attitude against the Nord Stream 2 project. However, in practice, the fate of the bill will be decided by the EU Council, where most countries are still inclined to either seriously change and soften the bill, or abandon it altogether. Bulgaria, which now chairs the EU, in early January asked the Council's legal service to assess how the bill complies with international, in particular maritime, law. In early March, the legal service concluded that the bill does not comply with international law and the extension of the Third Energy Package, that is, EU domestic law, to offshore gas pipelines passing through international waters is impossible. Earlier, the legal service of the European Commission came to similar conclusions.
Given this, as well as the fact that the scale of regulation in this case actually goes far beyond only the case with Nord Stream, Kommersant's interlocutors consider it unlikely that the EU Council would approve the current version of the bill. For example, Spain and Italy will have to negotiate existing gas pipelines with Morocco, Algeria and Libya (in the latter case, it is not entirely clear with which government). Also, if the UK completes its exit from the EU, it will have to negotiate the terms of use of the BBL and Interconnector gas pipelines, which connect Britain with the mainland. According to Kommersant's interlocutors in European gas companies, all this creates unexpected risks for them.
Gazprom will save $1 billion a year on Nord Stream 2 compared to transit through Ukraine
Gazprom assessed the positive effect of transferring gas transit volumes from the Ukrainian route to the future Nord Stream-2 gas pipeline at more than $1 billion a year - EBITDA and the company's free cash flow will increase by this amount. This is mainly due to the fact that Gazprom will pay the transport tariff actually to itself, as well as the greater efficiency of the new pipeline system - a shorter distance and higher pressure in the Gazprom pipe[14].
The commissioning of the Nord Stream-2 gas pipeline should increase EDITDA and Gazprom's free cash flow by more than $1 billion a year, the company's CFO Andrei Kruglov said in February 2018 at a meeting with investors in New York. He recalled that the costs of pumping the corresponding volume - 55 billion cubic meters - through the territory of Ukraine are now $1.5 billion. Mr. Kruglov noted that if Nord Stream-2 is fully consolidated in Gazprom's IFRS statements (now Gazprom is the only shareholder in the project), then since the company will pay for transportation, in fact, to itself, only operating expenses will be reflected in expenditure items, while investment expenses will be replaced by a non-cash item - depreciation.
"In terms of EBITDA and free cash flow, the investment component will become zero. The component that generates the profit will become zero. The difference in full will go to increase key financial indicators and cash flow, "hesaid.
In addition, as Gazprom has already reported, even the full tariff of Nord Stream-2 (taking into account investment costs) will be a third lower than the current tariff for pumping through Ukraine due to a shorter transport arm and higher pressure in the system.
Speaking about the Ukrainian gas transmission system, Deputy Chairman of the Board of the company Alexander Medvedev said that "the Ukrainian corridor can function only due to the fact that it is not 100% loaded." He also cited an assessment by the consulting company Mott MacDonald, according to which Ukraine needs to invest $4.8 billion in the modernization of its system in seven years, "while in fact Kyiv invests five to seven times less." Note that capital costs for Nord Stream-2 amount to €8 billion, that is, twice the cost of modernizing the Ukrainian system, while the capacity of the Ukrainian GTS (at the exit) is three times higher.
2017: Germany allows Nord Stream 2 construction in its waters
The operator of the Nord Stream 2 project received permission to build a gas pipeline in German territorial waters, according to a statement on the website of Nord Stream 2 AG (reported in February 2018 [[RIA Novosti]). The laying of the onshore part of the gas pipeline in the Lubmina area near Greifswald was also approved.
"The Stralsund Mining Department issued an official permit for the construction of a 55-kilometer section of the gas pipeline in accordance with the law on the energy industry," the company said.
Nord Stream 2 manager Jens Lange called the event "an important step in the comprehensive project approval process."
In November 2017, the Stralsund Mining Department approved work in the area of the German continental shelf (an analogue of the exclusive economic zone). A building permit must also be issued by the Federal Agency for Shipping and Hydrography.
Permit procedures in the other four countries along the pipeline route - Russia, Finland, Sweden and Denmark - are on schedule. Nord Stream 2 has fulfilled all the requirements and is awaiting approval of the application.
"This is a key decision that already opens up the opportunity to begin construction of the most important section of the new Nord Stream 2 offshore gas pipeline in the territorial waters of Germany and the onshore receiving terminal in Greifswald," said Gazprom Chairman Alexei Miller.
2016: Poland blocks creation of JV
In July 2016, UOKiK's Polish Office of Competition and Consumer Protection did not agree on a joint venture to build and manage the pipeline, citing possible competition restrictions. The international consortium was forced to withdraw the application and decided to implement the project without creating a joint venture. In August 2016, the head of Gazprom, Alexei Miller, said that the partners had confirmed their participation in the project, but would determine a new financing model by the end of 2016.
Existing and planned gas pipelines to Europe for August 2016
2015: Agreement on the construction of Nord Stream 2
Nord Stream 2. On September 4, 2015, an agreement was signed between Gazprom and its foreign partners (E.ON, Shell, OMV, Wintershall, Engie) on the construction of two new lines of the Nord Stream-2 gas pipeline. Their productivity will be 55 billion cubic meters per year, and the cost - €8-9.9 billion.
2011: First line 27.5 bcm launch m of gas per year
The design capacity of the first line, launched in 2011, is 27.5 billion cubic meters. m of gas per year. This is exactly half of the total design capacity of the entire gas pipeline. By the end of 2011, more than 900 km or more than 76% of the second line had already been built, it was commissioned in 2012.
Read also
- Gas exports from Russia
- Nord Stream AG (Nord Stream)
- South Stream AG
- Turkish stream
- Power of Siberia
- Baltic Pipe
- US and EU sanctions on Russian oil and gas sector
- Sanctions of Ukraine against Russia
- Foreign sanctions against Russian citizens and companies
Notes
- ↑ "Nord Stream-2" completed 99 percent
- ↑ [https://www.dw.com/ru/transparency-raskritikovala-germanskij-fond-dlja-spasenija-severnogo-potoka-2/a-56442046 , Transparency criticized
- ↑ German fund to save Nord Stream 2.]
- ↑ The European Commission confirms its disagreement with US sanctions in connection with Nord Stream 2.
- ↑ Russia has found an atypical way to complete the construction of Nord Stream 2
- ↑ Senators to Back Expanding Nord Stream 2 Sanctions to Insurers document
- ↑ the regulator of the Federal Republic of Germany refused to release Nord Stream 2 from the rules of the EU Gas Directive,
- ↑ "Nord Stream-2" will remain under the action of the EU Gas Directive?,
- ↑ US sanctions against Nord Stream-2: how will they turn out for the Russian Federation and Europe and why does the United States deliberately interfere? Expert opinion. Coface
- ↑ , the Finns agreed with Gazprom's pipe.
- ↑ " The European Commission did not support Nord Stream 2.
- ↑ [https://www.kommersant.ru/doc/3579505 European Parliament will hold back
- ↑ Stream"]
- ↑ will save $1 billion a year on Nord Stream-2 compared to transit through Ukraine
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