Dmitry Magonya commented on the decision of Gazprom and its partners not to create a joint venture for Nord Stream 2

Russian Gazprom, French Engie, Swiss OMV, German Uniper and Wintershall, and Dutch Shell failed to create a joint venture (JV). The main factor was the objections of the Polish Office of Competition and Consumer Protection (UOKiK, the local antitrust regulator) to the JV. Its study revealed that the joint venture for the design, financing, construction, and management of the Nord Stream 2 pipeline may lead to the restriction of competition on the gas market in Poland. According to UOKiK, Gazprom is dominant in the supply of gas, and the JV could strengthen its position in its negotiations with Polish consumers.

Dmitry Magonya, the managing partner of the ART DE LEX law firm, said that problem of Nord Stream 2 has to do with its alleged nonconformity, according to some countries, to the European Union’s Third Energy package, which prevents one company from supplying and transporting gas. For the purpose of energy security, the EU tends to decentralize gas market. Perhaps the members of the consortium will find another means of realizing the project, one that will not be so vulnerable to the criticism of protectors of energy security. However, any other form of implementation of Nord Stream 2 also will require coordination with regulators, Dmitry Magonya noted.