Get 40% Off
💰 Ray Dalio just increased his holdings in Google by 162.61% - See the full portfolio with InvestingPro’s free Stock Ideas toolCopy Portfolios

EU hopes closer to talks with Russia on divisive Nord Stream pipeline

Published 26/05/2017, 19:02
© Reuters. A woman walks past the European flag outside the EU Commission headquarters in Brussels
GAZP
-

BRATISLAVA (Reuters) - A top European Commission official said on Friday European Union members would be asked within days to give the bloc's executive a mandate to negotiate with Russia over the Nord Stream 2 gas pipeline, which has bitterly divided the bloc.

The planned 9.5 billion euro (8.28 billion pounds) pipeline project has led to a split between Eastern European and Baltic Sea states who fear it will increase their dependence on Russian gas and undermine Ukraine's role from Germany and other beneficiaries in northern Europe who back the plan.

In a letter addressed to Denmark and Sweden on March 28, the Commission said it was inviting all EU states to voice their concerns and would seek approval from EU energy ministers to negotiate an agreement with Moscow.

Commission Vice-President for Energy Union Maros Sefcovic said he hoped to get backing from all member states and Russia's cooperation to negotiate plans for the pipeline, which will pump more gas along an existing route to Europe via the Baltic Sea to Germany.

"We are finalising the draft mandate, we need a few days (...) and will present it to member states as the best tool for this politically sensitive project, which has polarised attitudes among member states, and represents a legal challenge because of colliding European and Russian law," Sefcovic told Reuters on the sidelines of the GLOBSEC Bratislava Forum.

"I believe we will get backing from all member states because most objections they have raised in negotiations have been taken into account."

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Russian state gas exporter Gazprom (MM:GAZP), which supplies around a third of the EU's gas, with much coming via Ukraine, is keen for Nord Stream 2 to be built by 2019, when it must renegotiate gas transit fees with Kiev.

But the Commission and German regulators are at odds over whether EU law should apply to the pipeline.

"I believe Germany will support this mandate as it said it wanted the transit via Ukraine to be maintained and possible negative impacts of the project to be neutralised," Sefcovic said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.