Russia's plan for a major new pipeline that critics say would undermine eastern Europe's energy security faces a fresh potential obstacle, after Denmark passed legislation that could stop the gas link being built in its waters.
The United States this week also reiterated its opposition to Nord Stream 2, a €9.5 billion scheme led by Kremlin-controlled energy giant Gazprom, which is intended to double the volume of Russian gas pumped to Germany via the Baltic Sea from 2019.
Most Nordic, Baltic and eastern European states object to the plan, saying it runs counter to the EU’s stated ambitions of reducing dependence on Russian fuel and preventing Moscow from using energy supplies for political leverage.
The pipeline would allow Russia to cut gas supplies to Ukraine – depriving the country of fuel and lucrative gas transit fees – and bypass EU members in eastern Europe while maintaining the flow to major clients such as Germany.
Denmark passed a law on Thursday that allows it to block pipeline projects on security or foreign policy grounds, amid concern in northern Europe over an increase in Russian war games and other military activity in the area. Sweden and Finland are also yet to issue permits required for construction to start.
Altered path
The Nord Stream 2 consortium is already considering a change to the pipeline’s planned route to take it north of the Danish island of Bornholm, where Denmark last month announced plans to build an 85m listening tower to intercept radio and other signals from Russia.
The project suffered another blow last month when the European Commission proposed changing EU rules to force operators of import pipelines to offer capacity to other energy providers and to ban gas suppliers from directly owning pipelines.
At the time, European Council chief and former Polish premier Donald Tusk wrote a letter to EU states urging them "to proceed swiftly with this proposal ... Time is of the essence, if we are to achieve the objectives of our energy union."
American sanctions
Potential partners in Nord Stream 2 were also spooked by US sanctions imposed on Russia in August, which threaten punishment for foreign firms that help Russia export its energy.
Senior EU officials criticised the sanctions and suggested the US was using them to muscle in on the European energy market. The measures could also pose problems for large German, French, Anglo-Dutch and Austrian firms that are partly financing Nord Stream 2.
US state department spokeswoman Heather Nauert said on Thursday that the pipeline would help "reinforce Russian dominance in Europe's gas markets. It would reduce opportunities for diversification of energy sources.
“It would pose security risks in an already tense Baltic Sea region and ... enable Gazprom to cut off transit via Ukraine and still meet demand in western Europe, which would economically undermine Ukraine by depriving it of about $2 billion (€1.68 billion) in annual transit revenue.”
The European Commission is seeking a mandate from member states to negotiate with Moscow over the pipeline, despite Germany’s insistence that the project is purely economic and does not need approval from Brussels.
