Report: Gazprom’s EU partners can sue if Nord Stream 2 suspended

MOSCOW, Feb 22 (PRIME) -- The European partners of Russian gas giant Gazprom on the Nord Stream 2 gas pipeline project can go to court if the pipeline is not launched, Energy Minister Nikolai Shulginov said in an interview to magazine Energy Intelligence released on Tuesday.

"Several European companies took part in the project. This will mean losses for them, and somebody will have to compensate them. They can go to court. We proceed from the fact that the issue of gas supply must not be politicized," Shulginov said.

Russia does not believe that the third energy package will not allow Gazprom to use 100% of the capacity of the pipeline.

Shulginov separately said that the high gas prices are not beneficial for Russia and for Gazprom because gas consumption decreases as the result, and economic growth is limited. The optimal level of oil prices is U.S. $55–70 per barrel, because demand will grow slower at higher prices.

Europe will be unable to replace large amounts of Russian gas with liquefied natural gas (LNG) from other countries, because all volumes are distributed under the current long-term contracts, Shulginov said. Russia stands for long-term gas contracts, because volumes and prices on the spot market are too volatile.

Coal exports to Europe rose by 10.3% in 2021 to 50.4 million tonnes.

Russia has a resource base in order to deliver gas to China under a new deal between Gazprom and CNPC. The Sila Sibiri and the Sakhalin–Khabarovsk–Vladivostok pipelines can be united to solve the issue. Production on the Kovykta deposit can be increased.

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