Nord Stream 2 AG, the Swiss-based owner of the Gazprom-controlled Nord Stream 2 gas pipeline, has filed a lawsuit against the European Union in the bloc's General Court, seeking to annul the EU's binding phase-out of Russian gas imports by late 2027. The lawsuit argues that the ban effectively expropriates the pipeline without compensation, according to a public document published in the EU's official journal.
EU Ban Blocks Revival of Nord Stream System
The EU approved a law this year to halt all Russian gas imports by late 2027, severing ties with Europe's former top supplier in response to Moscow's 2022 invasion of Ukraine. The ban blocked the prospect of reviving the Nord Stream system, which consists of two double pipelines under the Baltic Sea built by Russia's state-controlled Gazprom to deliver 110 billion cubic metres of gas annually to Germany. An explosion in August 2022 damaged both structures. Russia has accused Ukraine of being behind the attack, while Kyiv denies any involvement.
Lawsuit Claims De Facto Expropriation
In its lawsuit, Nord Stream 2 AG submits that the regulation effectively deprives it of the opportunity to use its pipeline commercially, constituting de facto expropriation without providing for any compensation. The company is owned by Gazprom, which did not immediately respond to a request for comment. Spokespeople for the European Parliament and the Council of the EU, to which the lawsuit is directed, both declined to comment.
Background on Nord Stream Pipelines
Nord Stream 2 was completed in 2021 but Germany halted the project just before Russia invaded Ukraine in February 2022. The pipeline never began operating. Nord Stream 1 had delivered gas to Germany for more than a decade. Only one pipeline of the four, part of Nord Stream 2, remained intact after the explosions. Russian President Vladimir Putin said this month that it could start pumping gas tomorrow.
Legal Challenge Against EU's Reinforced Majority Approval
The EU passed its Russian gas ban using a law that required approval from a reinforced majority of EU countries, designed to overcome opposition from Hungary and Slovakia. In its lawsuit, Nord Stream 2 AG argued that the Russian gas ban is a sanction-like measure which required all EU countries' approval. 'The choice of an incorrect legal basis renders the regulation null and void,' said the lawsuit, which was brought on April 27 and published in the EU's official journal last week.
Impact on EU Gas Imports
The EU imported around 40% of its gas from Russia before 2022. That dropped to around 13% last year. The ban aims to completely halt Russian gas imports by late 2027, further reducing Europe's dependence on Russian energy.
