The US believes Russia's Nord Stream 2 pipeline is a BAD deal for Europe

The US believes Russia's Nord Stream 2 pipeline is a BAD deal for Europe

Gazprom and its partners will develop a new model of financing the construction of Nord Stream 2 gas pipeline by the end of the year. All partners confirmed their participation, there are no changes in a schedule, Alexei Miller, the head of Gazprom, told journalists. Today Nord Stream 2 requires a construction of two lines of the gas pipeline with a capacity of 55 billion cubic meters annually from Russia through the Baltic Sea to Germany. Gazprom will own 50% of the assets, each European partner -  OMV, BASF, Engie, Shell, Uniper - will have 10%. However, the US doesn’t like the project. Vestnik Kavkaza presents an article by the British newspaper Express.

The United States believe a major pipeline involving Russia and several European energy companies is a "bad deal" for Europe, US vice president Joe Biden said during his visit to Sweden. 

Russia's Gazprom and its European partners agreed the Nord Stream 2 project, which will run across the Baltic Sea to Germany, last year.

But many eastern European countries and the United States have said the pipeline could limit supply routes and the energy security of the European Union, which gets a third of its gas from Russia.

Germany has been pushing for the Nord Stream 2, which would double the amount of gas which Berlin imports from Russia.

Italy is against the project as it believes it falls foul of EU rules - known as the Third Energy Package - which place strict limits on how EU countries source their energy. Italy also wants to become a major exporter of gas within the EU and fears the deal with Moscow could scupper those ambitions.

The complex negotiations to secure Europe's future energy supply look set to be a crucial battleground as EU nations put forward their vision for the bloc.

Uncertainty across the EU following the British referendum is likely to increase if key players such as Merkel and Renzi continue to disagree on energy and economy policy.


Vestnik Kavkaza

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