EC Nord Stream 2 Decision Must Benefit EU: Novak

Russia expects the European authorities to make decisions on the route of the Nord Stream-2 gas pipeline (NS2) that are in the interests of European consumers, Russian energy minister Alexander Novak told reporters on a visit to Turkey April 3. According to Tass, he said: "We expect that decisions will be aimed at satisfying the interests of Europeans and European companies in gas supplies. So far this process is not over, the work is in progress." He was responding to a question about the position of Denmark and other countries on the gas pipeline’s laying route.

Last November, the Danish parliament approved a bill allowing the authorities to prohibit the construction of NS2 in the territorial waters of the country but so far it has not exercised this right, which would oblige the pipeline route to be modified and extended. Gazprom and the project's financial backers say they are prepared for this however and have scoped out other routes.

Five western European companies are each contributing a fraction under one-tenth each to the cost of the 55bn m³/yr pipeline, the rest of the €9.5bn ($11.7bn) project being Gazprom's responsibility. 

EU states are divided over whether NS2 will benefit energy supply and security, with Germany and its continental neighbours to the west supporting it, whereas Poland and its Baltic allies states oppose it and officials in the US and Ukraine have expressed concerns.

Also April 3, the Russian daily Kommersant, citing sources, reported that UK financiers Glas Trust had advanced the equivalent of rubles 90bn ($1.6bn) to Nord Stream 2, in exchange for shares in NS2 until 2038. Glas Trust, the paper said, would act as co-ordinator for the loan, which lenders might see as safe if the US decided to impose sanctions on NS2. Sanctions could prohibit long-term lending to Russian projects. Sources told the paper that another advantage for these lenders would be the anonymity of lending through Glas Trust.