Nord Stream 2: European Union member States in the gas dispute

Merkel Germany won't become dependent on Russia for gas due to Nord Stream

Representatives from European Union nations endorsed a French-German proposal to extend the bloc's oversight of the €8.39 billion undersea project. "We still believe that this project is beneficial to both the European gas consumers' interests and to Russian Federation as gas supplier", he said.

The gas pipeline will link Russian Federation directly with Germany and will be the second gas pipeline connecting Russian Federation with Europe crossing the Baltics. "Yes, we are ready to support the Ukrainian Transit will continue, but under the terms we need".

Berlin and Paris has settled their dispute regarding the Nord Stream 2 and reached a tradeoff on amendments to the EU Gas Directive, suggesting their new version not blocking the pipeline project, AFP news agency reported on Friday, citing the received German-French draft of the accommodating paper.

The Nord Stream 2 pipeline is expected to come into service at the end of 2019. At the same time, but it should be ensured that the completion of the 1200-kilometre long pipeline is not compromised. The revised directive would apply to the Nord Stream 2 project.

Wolfgang Büchele of the German Eastern Business Association (OAOEV) also warned against rule changes: "We find it disconcerting that an economically sensible project in which a number of European companies are financially involved, among them some from France, is now being called into question as a result of irrelevant political deliberations and sustained pressure from the United States".

The newer draft, seen by Reuters, suggests Berlin is looking to take the lead on authorising the pipeline, which will run from Russian Federation directly to Germany.

The changes, which would regulate gas from third-party providers, could eventually make the project less profitable or even cost prohibitive.

What is the Nord Stream 2?

The agreement empowers Berlin as the key negotiator with Russian Federation on the pipeline project and guarantees that any rules will be applied by the "territory and territorial sea of the member state where the first interconnection point is located".

Moscow said on Friday the pipeline would benefit all European countries.

Previous wording of the new law on offshore pipelines had said European Union law had to be applied on the "territorial sea of the member states".

"There was indeed an agreement which was only possible thanks to close cooperation between France and Germany", German Chancellor Angela Merkel told reporters in Berlin when asked about Nord Stream 2.

"There is no French-German crisis", the spokesman added.

The EU executive wants a say over how Nord Stream 2 is used before its construction, which involves European companies, is completed.

If the proposed regulation musters enough support, negotiations on final draft rules could begin as early as next week.

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