Nord Stream 2 faces legal setback

RUSSIA / FSU POLITICS - In Brief 26 Aug 2021 by Alex Teddy
On August 25 a German court held that the pipeline must comply with the EU's Gas Directive. This might require the company that operates the pipeline - a Swiss registered entity called Nord Stream 2 AG - to sell half of its capacity to third parties. Gazprom will still own the pipeline but not operate it. Nord Stream 2 AG reacted angrily saying this is discrimination. The EU Gas Directive was altered in 2019, ostensibly to prevent any one supplier owning too much of the market.Naftogaz - the Ukraine's gas company - was elated. Ukraine says it is worried they the pipeline. It will reduce transit payments from Russia for allowing Russian gas to be piped across Ukraine to the EU. Kyiv claims it is also anxious lest Nord Stream 2 gives Russia political leverage over the EU.Germany has appointed a representative for Ukrainian gas transit issues. This is pursuant to Germany's agreement with the US on Nord Stream 2. The United States vigorously opposed the pipeline - essentially on protectionist lines, but stating that it expands Russian sway. Nevertheless, Nord Stream 2 is likely to become operational in Q1 2022, following a deal with the US in July.

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