EU court dismisses Nord Stream 2 appeal on gas regulation

The European Union Court dismissed Nord Stream 2's complaint against the EU directive on natural gas transmission. The company, a Swiss subsidiary of Russia's Gazprom, sought to exempt part of the pipeline from Russia to Germany from EU regulations.

However, the court found that these rules prevent competitive disruptions and protect supply security.

In April 2019, the European Union amended the gas directive, extending its scope to pipelines from third countries. The aim was to ensure equal competition rules in the EU market, which involved separating the roles of the pipeline owner and operator, allowing access to other companies.

Nord Stream 2 AG argued that it should not be subject to the new regulations because the construction of the pipeline began before they were introduced. In May 2020, the EU Court dismissed the complaint, and after the company's appeal, the Court of Justice of the EU in July 2022 deemed the complaint partially admissible and referred the case for reconsideration.

On Wednesday, the EU Court again dismissed the complaint, emphasizing that applying EU law to the section of the Nord Stream 2 pipeline within member states prevents competitive disruptions and negative impacts on supply security. The court stated that the company could have anticipated the extension of internal market rules to pipelines from third countries.

Nord Stream 2, a twin-pipeline from Russia to Germany through the Baltic Sea, was supposed to transport approximately 55 billion cubic metres of gas annually. The project was opposed by Poland, Ukraine, the Baltic states, and the US, arguing that it increases Europe's dependence on Russian gas. The pipeline was completed but was not launched due to Russia's invasion of Ukraine in February 2022.

In September 2022, Nord Stream 1 and 2 were damaged due to explosions. According to the Wall Street Journal, the sabotage was carried out by Ukrainian special services, supported by Poland.