Permit Germany to build “Nord stream-2” was not final

Mining Department of the German city of Stralsund issued a permit for the construction and operation of the offshore section of the pipeline “Nord stream‑2” in German territorial waters. This decision serves as a signal to start creating a new export route for supplies of Russian hydrocarbons to Europe bypassing Ukraine. Thus at the Square, which is now transportorul a significant amount of “blue fuel” from our country to the EU, there are fewer chances to keep control of the transit of hydrocarbons.


As explain in Nord Stream 2, the company-operator of the project “Northern stream‑2”, the decision of the German court means a permit for the construction and operation of the offshore section of the pipeline in German territorial waters and land plot near the city of Greifswald situated on the Baltic sea coast and is the most convenient point of the underwater segment of the new Russian export pipeline. “This is a key decision, which opens the opportunity to start building a very important section of the gas pipeline “Nord stream‑2” — described the incident, the head of “Gazprom” Alexey Miller.

Meanwhile, the monopoly should be prepared to undergo the following approval procedures. The cut, the construction of which gave the consent of the German court, it is only 55 km of pipeline with a total length of 1.2 thousand km Gazprom and its subsidiaries related to the “Nord stream‑2”, to obtain similar approval from not only other administrative services in Germany, but also from governmental organisations other interested European countries which affects the route of the “Nord stream‑2”. In particular, Finland, Sweden and Denmark. The passage of these bodies may be more difficult, considering that “Gazprom” already there was friction with the relevant services of the Scandinavian countries.

So, in July of last year, the Federal network Agency of Germany has demanded to change the plan of development of gas networks in my country until 2026 and does not include five projects are related to the “Nord stream‑2”. And at the end of November against the implementation of the Russian project was initiated by Denmark. Copenhagen has even issued a law that may prohibit pipeline construction in its waters, citing foreign policy interests and security concerns.

Nevertheless, all these obstacles is quite passable. The ruling of the Federal network Agency of Germany, was made literally a day after the publication of the controversial “Kremlin report” USA (threatening Moscow with new sanctions), making small changes in gas infrastructure that will be required after starting the primary route of the “Nord stream‑2”. Similar adjustments are being made regularly and to implement the project are not key.

In turn, published by the Danish Parliament a law allowing to call into question the appropriateness of laying the “Nord stream‑2”, contrary to international law. According to the UN Convention on Maritime law, the limitation on the laying of pipelines is equivalent to the ban on freedom of navigation. Hence, this solution is not in the competence of Copenhagen. At least, according to the Deputy Director General for gas problems national energy security Fund Alexei Grivach, if Denmark will insist on the application of the new law and prevent the construction of “Nord stream‑2”, “Gazprom” will be able to find an alternative route for laying the pipe.

The European Commission’s position is also not tenable. Unity in relation to the new Russian gas pipeline to European countries is not observed. Strongly against are the Baltic States and Poland that prefer to buy “blue fuel” in the United States, which cost 20-25% more than the price of Russian gas. However, according to the head of the Eastern Committee of German economy Wolfgang Buchele, mutual losses of EU sanctions against Russia amount to 100 billion euros. More than half of the damage to European counterparties.

The rejection of the “Nord stream‑2”, in which European energy companies, according to the Nord Stream CFO Paul Corcoran 2, just last year, has invested about 3 billion euros, will retain the dependence of the Old world, from Ukraine. This will allow the budget Square annual earn up to $2 billion for transit of Russian gas to Europe.

However, as suggested by Grivach, the European country will choose the economic priority when determining the future of this project and put into the background the political support of Kiev. Therefore, the decision of the German court, which Kiev has called the recent “disturbing call”, the threatened Square as the minimum increase in the budget deficit and the rising costs of utilities.

official channels

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