Page 17 - EurOil Week 40

EurOil POLICY EurOil

Poland fines Gazprom $7.2bn for

building Nord Stream 2

POLAND POLAND’S competition watchdog UOKiK said increases the economic dependence on the Rus-
on October 7 it had fined the Russian gas supplier sian gas - not only in the case of Poland, but also
Poland has long been Gazprom PLN29bn ($7.6bn) for building Nord of other European states,” Chrostny added.
wary of Nord Stream 2, Stream 2, a gas pipeline from Russia directly to Gazprom has vowed to appeal the decision.
viewing it as a political Germany via the Baltic Sea, without its consent. “The UOKiK ruling breaches the principles of
project as much as a Poland has long been wary of Nord Stream 2, legality, proportionality, and just trial, while the
commercial one. viewing it as a political project as much as a com- unprecedented size of the fine is a testament to
mercial one. The project puts EU energy security the desire to oppose the Nord Stream 2 project’s
at risk and could be used by Russia as a tool of implementation by any means.”
pressure in central and eastern Europe. Warsaw has long eyed the Nord Stream 2 pro-
“[The] completion of the project constitutes ject with the utmost suspicion. If completed, the
a breach of legal provisions and fair competi- pipeline will allow Russia to pump some 110bn
tion rules, resulting in increasing the degree of cubic metres of gas to Western Europe annually.
dependence of gas recipients, on the internal This would enable it to circumvent Ukraine and
market, from a single supplier – Gazprom,” cut transit volumes via Poland.
UOKiK said in a statement. Poland is advancing a number of new gas
Gazprom and its European partners – Ger- import projects to ensure it can forgo Russian
many’s Uniper and Wintershall Dea, Shell, gas purchases after its long-term supply contract
Austria’s OMV and France’s Engie – originally with Gazprom expires at the end of 2022.
wanted to finance, build and operate the €9.5bn Nord Stream 2 is Europe’s most controversial
($11.2bn) Nord Stream 2 through a joint venture. energy project. While it enjoys support from
They had to ask UOKiK for permission, given Germany and other Central Europe states set to
the project’s impact on the Polish gas market, but receive its gas, the EU’s eastern members have
the regulator denied it. said it will undermine the bloc’s energy secu-
The companies reached financing agreements rity and give Moscow more political leverage in
instead, with Gazprom pledging to cover half Europe.
of the pipeline’s cost. UOKiK argues that these The US wants to introduce additional sanc-
agreements effectively gave the companies the tions that would make it even harder for Euro-
same rights and obligations as they would have pean companies to assist with Nord Stream 2’s
done in a joint venture, meaning its approval was completion. Earlier sanctions introduced in
still needed. December forced Swiss contractor Allseas to
UOKiK also fined Gazprom’s partners a total abandon work on the pipeline.
of PLN234mn, representing 10% of their annual Berlin has also faced pressure to withdraw its
turnover. support after the poisoning of Russian opposi-
“I have not identified any attenuating cir- tion leader Alexei Navalny. However, German
cumstances. The activities of the six companies Chancellor Angela Merkel has refused to do so,
negatively impacted competition on the natural describing Nord Stream 2 as a commercial rather
gas market in Poland,” UOKiK’s head Tomasz than political venture.
Chrostny said in a statement. Only 6% of Nord Stream 2’s offshore section
“The launch of NS2 will threaten the continu- is left to complete. Russia plans to use its own
ity of natural gas supplies to Poland. An increase pipelaying vessels to finish the job. Moscow has
in the price of the product is also highly likely, said it hopes to bring the pipeline on stream in
with the said increase being borne by Polish con- early 2021, more than a year behind the original
sumers. Completion of this investment project schedule. ™

Week 40 08•October•2020 www. NEWSBASE .com P17