Gazprom to build the Nord Stream 2

Economy Nilgun Salim
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Only a few energy companies have a stronger and divisive power than Gazprom’s Nord Stream 2, the Russian gas system worth $11 billion dollars and measures 1,200 kilometers.

The pipeline was specially created in order to export the gas from Russia directly to Germany, under the Baltic Sea.

The U.S. Government and some EU state members were against the project, claiming it will increase Europe’s attachment on Russia and will restrict the competition.

The officials added that the Russian gas giant will affect the economies of countries like Ukraine, Slovakia, and Poland.

However, the project has a group of powerful supporters as well.

Five large European companies are going to be involved in its realization: German company BASF, Sniper, France’s Engi, OMV and Austria’s Dutch Shell. Even German Chancellor Angela Merkel expressed her support for the Russian company.

According to these companies, Nord Stream will ‘eliminate the transit risks’ and the Nord Stream 2 will represent a more efficient environment for the European gas supply, making the market a lot more competitive.

Last month, Poland announced a major blow regarding the project. According to their government, they are planning to block Gazprom’s initiative, due to its dominant position in Central Europe.

The five European partners moved away from the project, taking a 10% stake from the Nord Stream 2 consortium.

Gazprom announced that Nord Stream 2, 100% owned by the Russian monopoly, will proceed the initiative alone and its European partners must find a way to ‘contribute’.

The Russian gas supplier does not give up that easily. The company reported a potential agreement with its European partners and will reveal its future plans during a forum set to take place next week.