Official: EU needs special rules for Russia’s Nord Stream-2

BRUSSELS, Jun 1 (PRIME) -- The European Commission sees it necessary to create special norms for the Nord Stream-2 pipeline because the Russian and European laws set different rules for the project, Vice President of the European Commission for energy issues Maros Sefcovic told PRIME late Tuesday.

“This project must not be fully based on Russian legislation. We must establish a special form, structure which is usually used in clashes between different legislations, this time between legislation of the E.U., Germany and Russia,” Sefcovic said.

The Nord Stream-2 project envisages construction of two lines of a gas pipeline with a capacity of up to 55 billion cubic meters of gas annually, running from the Russian shore to Germany under the Baltic Sea. Russian gas giant Gazprom will hold 50% in the project, while E.ON, BASF, Royal Dutch Shell, and OMV will own 10% each, and Engie will get a 9% stake.

Brussels opposes the pipeline because of fears of too strong a reliance of Europe on Russian supplies. Sefcovic said earlier that Nord Stream-2 must fully comply with the E.U. legislation although it runs under the sea. The rules include prohibition for a gas supplier to own the pipeline, as well as environmental rules.

The official said that the European Commission is studying details of Russian state purchases for the needs of Nord Stream-2.

Sefcovic also said that Russian gas transit across Ukraine must remain high in order for the gas pipeline system of the country to remain in operation. “Speaking about the Ukrainian transit, we must speak about sustainable and significant amounts of transported gas because the levels of about 10–12 billion cubic meters are not enough to maintain the pipeline system.”

Gazprom has repeatedly said that it is very unlikely to prolong a transit contract with Ukraine after 2019 on unprofitable conditions. In January, Kiev increased transit tariffs for Gazprom by over 50% to U.S. $4.5 for 1,000 cubic meters of gas per 100 kilometers.

According to Sefcovic, Russia and Ukraine can start discussion on transit prolongation, intermediated by the E.U., after a Stockholm court rules on the Gazprom’s lawsuit against transit tariff increase.

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