Page 8 - FSUOGM Week 05 2021

FSUOGM PIPELINES & TRANSPORT FSUOGM

Russia warns of legal action to

protect Nord Stream 2

RUSSIA RUSSIA has warned it could use legal means to of the mass detention of protestors across Russia.
protect its Nord Stream 2 pipeline, after France Navalny returned to Moscow on January 17
France has urged called on the project to be blocked over Mos- from Berlin, where he was being treated for poi-
Germany to rethink its cow’s treatment of opposition leader Alexei soning from a Novichok nerve agent, which he
support for the pipeline. Navalny and his supporters. says was carried out by Russian security services.
France on February 1 urged Germany to Tens of thousands took to the streets of Russia’s
rethink its support for Nord Stream 2, as a result largest cities on January 23, followed by similar-
of Navalny’s detention in mid-January and a ly-sized protests on January 31.
crackdown on opposition protests. Dmitry Medvedev, deputy chairman of
“We have already said we have the greatest Russia’s Security Council, said on February 1
doubts on this project in this context,” European that Russia would consider legal action against
Affairs Minister Clement Beaune told France attempts to thwart Nord Stream 2. The former
Inter radio. Asked if France wanted Berlin to prime minister also stressed that he still expected
withdraw its backing, he said: “Indeed, we have the pipeline to be finished, despite international
already said this.” pressure.
Germany has repeatedly defended Nord “Sanctions have already been imposed, we
Stream 2 as a commercial rather than a political could do that but we have to be clear, they will
project, putting it at odds with other EU mem- not be enough,” Beaune continued. “The Nord
bers and the US. It has even taken steps to shield Steam option is one under consideration,” he
the pipeline from tougher US sanctions, due to said, while acknowledging that “it’s a deci-
come into force in the near future. All eyes are on sion for Germany, because the pipeline is in
whether Berlin’s resolve will weaken in the face Germany.”™

Gazprom strikes €100mn settlement

deal with Bulgaria’s Overgas

BULGARIA RUSSIAN energy giant Gazprom said on Jan- with Bulgarian businessman Sasho Dontchev back
uary 29 that it has reached a final settlement of in 1995, and Russian gas was supplied to Bulgaria
The deal will see all claims and disputes with Bulgaria's Overgas through the venture until the end of 2015.
Gazprom withdraw Group, and has agreed to sell its stake in Overgas The Bulgarian authorities pushed at the time
from Overgas and Inc., expecting to receive €100mn as part of the for Gazprom to enter into a direct gas supply
draws a line under a settlement. contract with state company Bulgargaz and as
long-running dispute. “In Sofia, the Overgas Group and the Gazprom of 2016, Bulgargaz remained the sole Bulgarian
Group reached a mutually satisfactory final agree- recipient of Russian gas.
ment on the settlement of all existing disputes and Following the halt of supplies, Overgas Inc.
claims, as well as the sale of the Gazprom Group's challenged the ending of its contract with Gaz-
share in Overgas Inc. AD. As a result of the agree- prom in 2015, filing a lawsuit against the Rus-
ment, the Gazprom Group will receive over sian company with the International Court of
€100mn,” Gazprom said in the statement. Arbitration of the International Chamber of
Earlier in January, natural gas distribution Commerce, as well as a complaint to the Euro-
company Overgas Mrezhi, which is owned by pean Commission about possible violations of
Overgas, agreed a €117mn euro loan financing antitrust legislation.
from a syndicate of five banks - the Interna- At the end of 2015, Gazprom’s announcement
tional Bank for Economic Co-operation, and that it would not supply natural gas via Overgas
Sofia-based UniCredit Bulbank, Raiffeisenbank provoked a crisis as 200,000 people were at risk
Bulgaria, DSK Bank and Allianz Bank Bulgaria. of remaining without heating during the winter.
The funds will be used for the settlement with Overgas was at the time the largest private energy
Gazprom, investment and a €7mn multi-pur- company in Bulgaria. Its daily supplies to clients
pose credit line. amounted to 1.5mn cubic metres per day, which was
The process of separating the two companies equal to 10% of the gas consumption in Bulgaria.
began in 2015 when Gazprom halted natural gas Currently, Overgas maintains 2,100 km of the
supplies to its daughter company Overgas. country's gas distribution network and supplies
Gazprom formed the Overgas joint venture gas to 51 municipalities. ™

P8 www. NEWSBASE .com Week 05 03•February•2021