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Russian Gas Link Extension May Face EU Law Compliance Risk

  • EU analyzes application of energy law to Nord Stream 2 project
  • Lawyers say project wouldn't meet EU rules without changes
Updated on

Russia’s plan to expand a natural-gas pipeline to the European Union may face hurdles as EU lawyers signaled the undersea project in its current form would not comply with a set of laws on energy-market liberalization.

The EU law applies not only to the onshore part of the Nord Stream 2 venture but also to the offshore section that falls under the territorial jurisdiction of Finland, Sweden, Denmark and Germany, according to a legal opinion by the European Commission’s Directorate General for Energy. That view contradicts the position of Russian export monopoly Gazprom PJSC, which has said it would only need approvals from the governments of those member states to lay the pipe, which is to run under the Baltic Sea.