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18
November
2021

Naftogaz will try to prevent Nord Stream 2 launch through participation in pipeline operator certification

KYIV. Nov 18 (Interfax-Ukraine) – The involvement of NJSC Naftogaz Ukrainy in the certification process for the Nord Stream 2 (NS2) operator increases the chances of preventing the gas pipeline from being launched, the company said in a press release, citing its legal department.

"According to the Naftogaz legal office, the Federal Network Agency of Germany (BundesNetzAgentur, BNetzA) decision to accept Naftogaz participation in the certification process will make it possible to submit arguments against the applicant’s certification and obliges BNetzA to take these arguments into consideration," the company said on its website.

"In addition, the BNetzA decision explicitly states that the "economic interests of Naftogaz may be significantly violated in the future." The German regulator’s recognition of this fact increases Naftogaz’s chances of appealing successfully to the German courts against the certification of NS2, if this proves necessary," it reads.

"The acceptance of Naftogaz in the certification process at this stage enhances the chances of similar inclusion by the European Commission in the next stage of the certification process. The European Commission is a participant in the certification process independent of BNetzA, representing the interests of all European Union member states," it says.

"As noted by the legal department of Naftogaz, the applicant was adamantly against Naftogaz participation in the certification process. The applicant submitted its objections to the regulator against Naftogaz involvement. However, these were rejected," Naftogaz stated.

"It is worth recalling that Naftogaz welcomed the recent decision by BNetzA and is ready to provide the regulator with its legal position in the nearest future. This position is based on the fact that Nord Stream 2 AG cannot be certified without ensuring its full compliance with European and international laws," the report reads.

"The launch of NS2 would strengthen Gazprom’s dominant position and impact energy markets in Slovakia, Hungary, the Czech Republic, Austria and other European countries. The pipeline does not comply with a range of requirements set out in European legislation. Crucially, the pipeline operator is directly tied to Gazprom. Access to gas transmission through NS2 along the entire gas pipeline (from the starting point in Russia to the end point in Germany) is not provided to other customers, as is required by law," according to the document.