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Nord Stream 2 eyes way to curb EU oversight of $9.5bn pipeline

The group building the Nord Stream 2 pipeline to import Russian gas into Germany is exploring plans to hive off its last 50km into a separate company, a move that would undermine EU plans to regulate the entire $9.5bn project. Under the proposal, a new company would own and manage the small part of the undersea pipeline within German territorial waters. While this section would be subject to EU rules, the rest of Nord Stream 2 — nearly 1,200km through the Baltic Sea — would remain outside the bloc’s jurisdiction, according to three people familiar with the plans. The plan, while in its early stages, could stoke further criticism of Nord Stream 2, owned by Russia’s Gazprom, which some central and eastern European member states charge is counter to EU efforts to diversify its energy sources. The US has threatened sanctions against the project and criticised Germany for its strong support for the pipeline. Governments on both sides of the Atlantic worry that Moscow could use the pipeline to reduce gas shipments through Ukraine and deny Kiev an important source of revenue.

Read the full article published on the Financial Times news website.