Gazprom prepares funding for Nord Stream II

Reportedly, Gazprom does not want to bear the full cost of the project and it is still seeking ways to avoid doing so. In August 2016, the company’s plans to split the cost of the pipeline with the project’s European partners (including Engie, OMV, Wintershall, Uniper and Royal Dutch Shell) were abandoned after Polish regulators objected.
Although the project has yet to be approved by the EU, recent reports on the EurActiv media platform claim Brussels may be preparing to give it the green light. The EU says Gazprom has offered key concessions on its pricing and other policies in a bid to end Brussels’ lengthy antitrust case against the state-run Russian natural gas giant. The Russian firm also offered to forego seeking damages from its Bulgarian partners over the cancellation of the South Stream pipeline project.
Gazprom had been accused of exploiting its Soviet-era pipeline monopoly to charge higher prices in Eastern Europe than in the West. Many of the post-Communist countries involved rely on Gazprom for the majority of their gas supplies, and they now have until May 4th to review the terms and suggest changes. If the deal goes through, Gazprom will avoid massive fines, but if it then goes on to breaks its commitment, Brussels could fine the company 10% of its global turnover without reopening the case.
EU Competition Commissioner Margrette Vestager said the provisional deal would benefit millions of Europeans. “We believe that Gazprom’s commitments will enable the free flow of gas in Central and Eastern Europe (CEE) at competitive prices,” she said. The Nord Stream II pipeline will run between Russia and Germany, bypassing Poland and other countries in the region, which some countries say will further increase the EU’s reliance on Gazprom. Gazprom says the pipeline is a purely commercial venture, and that its European partners are still trying to find a way to contribute to the pipeline’s construction.