December 3, 2021
German agency suspends approval process for Russia pipeline

German agency suspends approval process for Russia pipeline

BERLIN — Germany’s community regulator mentioned Tuesday that it has suspended its process to certify the operator of a brand new pipeline that will carry Russian gasoline to the nation underneath the Baltic Sea due to a problem with the corporate’s standing underneath German regulation.

Final month, Russian President Vladimir Putin mentioned the nation may rapidly increase pure gasoline provides to the European Union as soon as German regulators enable the brand new pipeline to start out operation. Power costs have soared in Europe, which imports a lot of its pure gasoline from Russia, and led to ache for companies and households.

It wasn’t instantly clear to what extent the transfer by the German community regulator, the Bundesnetzagentur, to droop the process to certify Nord Stream 2 AG as an impartial transmission operator may delay these plans. The step is required earlier than gasoline can legally movement.

“Following a thorough examination of the documentation, the Bundesnetzagentur concluded that it would only be possible to certify an operator of the Nord Stream 2 pipeline if that operator was organized in a legal form under German law,” the regulator mentioned in a press release.

The working firm is predicated in Zug, Switzerland, and “has decided not to transform its existing legal form but instead to found a subsidiary under German law solely to govern the German part of the pipeline,” it added. That can develop into the proprietor and operator of the German part of the pipeline.

The agency mentioned the certification will stay suspended “until the main assets and human resources have been transferred to the subsidiary” and it could actually confirm the documentation is full.

Owned by Russian-controlled gasoline big Gazprom with funding from a number of European corporations, Nord Stream 2 was constructed underneath the Baltic Sea and bypasses Poland and Ukraine, elevating objections from these nations.

The U.S. has strongly opposed the development of Nord Stream 2, but it surely reached a cope with Germany in July to permit the pipeline’s completion with out imposing U.S. sanctions on German entities.

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