Ukraine to Take Part in Pipeline Certification Process

The project has faced stiff opposition from Ukraine and its allies, including the U.S. (Wikimedia Commons)

Germany’s energy regulator announced on November 15 that two Ukrainian energy companies, Naftogaz and GTSOU, will also be included in the Nord Stream 2 certification process, according to Reuters. The pipeline, which is set to carry gas from Russia to Germany by way of the Baltic Sea, was completed in September according to Reuters, and awaits approval from Berlin.

The pipeline faces scrutiny over unbundling rules―whether the owners of the project are different from the suppliers—though the original Nord Stream was classified as exempt. Though Russian state energy firm Gazprom led the project, the pipeline is also financed by several notable European power companies according to Gazprom. ENGIE, OMV, Royal Dutch Shell, Uniper, and Wintershall, funded 50 percent of the project, which cost around €9.5 billion ($10.7 billion). 

According to Reuters, though Germany and the United States released a statement in July resisting Russia’s weaponization of energy projects, Ukraine and the U.S. have been strongly opposed to the project. Al-Jazeera noted that Ukraine has called Nord Stream 2 a “dangerous geopolitical weapon,” as it will significantly reduce Ukraine’s role in gas imports to Europe. The U.S. has echoed these concerns as reported by Reuters, adding that it will render Europe more reliant on Russian gas. According to the Marshall Center, the European Union currently imports 38 percent of its foreign gas supply from Russia. 

Other U.S. allies have also spoken out about the pipeline. Financial Times reports that U.K. Prime Minister Boris Johnson has said that the EU must choose between defending Ukraine or approving the pipeline. Poland, which is also a gas transit country and will be participating in the certification process, sees the project as a threat to European energy security, according to S&P Global.

Reuters notes that Germany’s energy regulator has until early January to complete its certification, though Ukraine is hopeful the pipeline will not be approved.