Trade Wars News came from the field of energy
The latest trade wars news may have a negative effect on Eurozone countries and other regions. It is reported that the European Commission spoke in favor of amending the conditions for the construction of the Nord Stream 2 gas pipeline. According to officials, it is necessary to form a set of rules that would equate land and underwater pipelines in the rights.
The object is scheduled for commissioning in 2020. Its creation has repeatedly caused conflicts at the international level.
What is Nord Stream 2?
Nord Stream 2 is an expansion of the already existing Nord Stream gas pipeline, through which gas is transported from Russia to Germany along the bottom of the Baltic Sea. It is assumed that its capacity will be the same as that of the “older brother” – 55 billion cubic meters per year.
What problems accompany the project?
Since the construction and subsequent use of the gas pipeline to a varying degree affects not only the countries of Europe, but also other regions of the world, many organizations and heads of state opposed the Nord Stream 2. For example, in Denmark, there has long been a discussion about the object, since laying takes place in the territorial waters of the Scandinavian state. Law adopted at the end of 2017 protects them. According to him, the Danish government can prohibit the construction of such projects, guided by considerations of environmental safety and foreign policy.
During 2018, the conflict developed, lawyers and various officials joined in to discuss it. As a result, consensus has not been reached yet. In June 2018, the Danish Prime Minister announced that the state could approve a bill that would legally allow blocking or postponing the implementation of Nord Stream-2. At the same time, experts note that in practice this will not be possible.
Also among the opponents of the project are countries that, in the event of a gas pipeline, may lose profits for the provision of transit services. These include Poland and Ukraine. Romania and Hungary, remote from the point of gas supply, which is why transit payments for them may increase, also oppose the project.
Other states that do not support the Nord Stream 2: Estonia, Latvia, Lithuania, Romania and the United States. Geopolitical interests dictate US activity in this matter, since the introduction of the gas pipeline will make Europe dependent on Russian gas, and this, in turn, may affect their freedom to make decisions regarding sanctions against the Russian Federation.
Returning to the position of the European Commission, according to the deputy head of the Energy Union, Maros Shefchovic, toughening the gas policy of the European Union may begin as early as February 2019 and will be caused by the fact that since January Romania, which opposes the construction of Nord Stream-2, has become EU Council President.
