Page 10 - RusRPTMay19

● Block websites and services: Until now, internet watchdog Roskomnadzor could only tell internet providers what needed to be blocked, with the result depending on the effectiveness of the target’s defenses. Now, network operators will be required to install special equipment, costing a minimum of $400mn, to carry out targeted blocks, which Roskomnadzor will be in control of itself.
● Disconnecting Russia’s internet from the world: The law mandates the creation of a traffic-management system that would give access to cross-border connections. This should make it possible for Russia to cut its internet off from the rest of the world in a crisis. It will be up to the government to decide what would trigger such a move.
● The appearance of a super internet regulator: Roskomnadzor, which has close ties to the security services, will receive significant new powers. As well as installing, modernizing, and using equipment for blocking and filtering traffic, the agency will determine the policy for connecting internet providers to networks and control cross-border communication. In effect, Roskomnadzor will write the rules that govern how the Russian internet works.
2.5 Nord Stream 2 possible delays after EU pass third energy directive
The EU Council finally approved a European gas directive on April 15 that is expected to delay commissioning of the Nord Stream 2 gas line – and potentially leave it half empty.
Extending EU rules to non-EU pipelines – particularly those outside of the EU territory – the directive will force Gazprom to “unbundle” or hand over operation of the line to a company independent of Russia’s state gas producer. However, Gazprom maintains a jealously guarded monopoly over gas exports from Russia and will be very reluctant to share the right to export with anyone. Currently the only other entity allowed to export gas is privately owned Novatek, which is limited to exporting LNG.
Potentially, more seriously, half of the pipeline has to reserved for third companies. Given Gazprom’s gas export monopoly, this could leave half of the pipe empty until Russia’s creates a separate gas exporter and will almost certainly create delays for the pipeline.
Nord Stream 2 is due to come online at the end of this year and construction is progressing well with 800km of the 1200km pipeline already built according to recent reports. Ukraine is afraid of the pipeline as the extra 55bcm capacity will allow Russia to completely by pass Ukraine, depriving it from a badly needed circa $3bn a year in gas transit revenues.
Ukraine’s Mission to the EU issued a statement welcoming the new rules.
A delayed launch of Nord Stream 2 might require Gazprom to discuss 65- 70bcm/a transit through Ukraine, VTB Capital (VTBC) said in a note.
Nord Stream 2 AG submitted a third application for a route through Danish waters on April 15, as the company seeks ways to dodge the new rules. It envisages a route in the Danish exclusive economic zone (EEZ) in the waters south of Bornholm island in accordance with the decision made by the Danish Energy Agency (DEA) on March 26, VTBC reports.
10 RUSSIA Country Report May 2019 www.intellinews.com