Nord Stream 2 pipeline owner sues EU over Russian gas ban

Nord Stream 2 AG is suing the European Union in the EU's General Court to annul the bloc's binding phase-out of gas imports from Russia by late 2027.

The owner of the Gazprom-controlled Nord Stream 2 gas ​pipeline is suing the European Union in the bloc's second-highest ​court, seeking to annul the EU's binding phase-out ‌of ​gas imports from Russia, a public document showed. 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 - 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. Kyiv has denied any involvement. In a lawsuit brought ‌before the EU's General Court, Nord Stream 2 AG, the Swiss-based entity that owns the pipeline of the same name, is seeking to annul the EU ban, arguing that the ban effectively seizes the pipeline. Nord Stream 2 AG is owned by Gazprom.

"The applicant submits that the regulation effectively deprives it of the opportunity ⁠to use ​its pipeline commercially. That constitutes de ⁠facto expropriation without providing for any compensation," the lawsuit said. Gazprom 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.

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. The EU passed its Russian gas ban using a law that required approval from a reinforced majority of EU countries. The ⁠move was ​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. 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."

The EU imported around 40% of its gas from Russia before 2022. That dropped ‌to around 13% last ‌year.