Germany Proposes Consortium To Answer Questions of Russian Nord Stream 2 Pipeline

Germany has proposed a consortium to protect Ukraine’s role as a transit country for Russian gas once the Nord Stream 2 pipeline begins operation.

Ukraine would lose more than $3 billion in annual fees that Russia pays to transport gas through the country. This is according to CEO of the Ukrainian State Oil and Gas Company Naftogaz.

There is also the geopolitical element. Baltic states fear the pipeline could increase Europe’s reliance on Russian gas and undermine Ukraine’s role as a gas transit route.

Estonian Foreign Minister Sven Mikser said ‘it was important not to give any single gas supplier greater leverage over EU policy.’

Gazprom’s Nord Stream 2 project has been a contentious issue in Germany. Chancellor Merkel has previously said the pipeline project can only go ahead if Ukraine’s role is protected. The €9,5 billion infrastructure project will run from Russia to Germany while bypassing Ukraine.