Contract signed to build Nord Stream 2 pipeline

Besides, "the absence of the infrastructure for transit is music to a blackmailer's ears because in this case, neither Russian Federation nor Europe will have any chance to provide a stable supply of gas to the European market", Grivach concluded.

He attributed the decrease in Gazprom transit supplies to the fact that an ever-increasing share of hydrocarbons is extracted in Russia's Yamal Peninsula.

Gazprom, however, does not believe it will be sensible to maintain such levels after the completion of the Nord Stream 2 gas pipeline, which will allow gas to be pumped directly to Germany.

But the EU's own lawyers as well as the German energy regulator, the Bundesnetzagentur, have rejected the Commission's bid for European Union energy rules to be applied to an import pipeline that is outside the bloc's legal border.

Critics also say that Russian Federation wants to punish transit nation Ukraine, which has become its geopolitical foe following Moscow's seizure of Crimea in 2014. "So we can expect new records this year and Gazprom's European market share is poised to rise", said Miller, one of the closest and longest serving allies of President Vladimir Putin, speaking in a telephone interview.

Gazprom wants to double capacity of Nord Stream.

In a joint statement, the companies said: "The financial commitment by the European companies underscores the Nord Stream 2 project's strategic importance for the European gas market, contributing to competitiveness as well as medium and long-term energy security especially against the background of expected declining European production".

Ukraine has capacity to handle the transit of up to 120 bcm of Russian gas a year and was the main route for supplies to the West since the Soviet era.

Additionally, Nord Stream 2 has initiated the environmental impact assessment (EIA) procedure in compliance with Russian law.

  • Zachary Reyes