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Eastern Europe Issues Challenge To Expansion Of Russian Gas Pipeline

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A plan to extend Gazprom’s Nord Stream gas pipeline to Germany, essentially skipping over Poland the Baltic States and Ukraine has been challenged by a collection of regional powers.

Ten countries in the region have signed on to an official complaint to the European Commission, calling for further discussion on plans by the Russian energy giant to extend its energy infrastructure.

In addition to reducing the transport role of countries like Ukraine, which currently moves a substantial amount of natural gas into Europe, critics of the plan have voiced concerns about its potential to increase Russia’s energy role across the continent.

In recent years, the European Commission and the U.S. have supported energy diversification efforts among European energy consumers in an attempt to reduce dependence on Russian producers. Driven by concerns about the potential for Russia to halt deliveries, which has occurred in the past, Brussels has supported efforts to increase production in new markets, allowing for new trade agreements.

According to the U.S. Energy Information Administration, 84% of Russia’s oil exports and 80% of its natural gas exports went to European Union consumers. 

However, many of these developments have failed to sufficiently provide alternatives to Russian natural gas, including renewable energy development and the many obstacles facing North African oil and gas efforts.

Those signed on to the complaint, including Bulgaria, the Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Poland, Romania and Slovakia, have appealed to the Commission to analyze the proposal and its potential impact on the local energy markets. Further, the countries have suggested that the extension will create further risk for Europe’s energy options by creating a larger role for Russia in the region.

“Preserving the transport route through Ukraine is the strategic interest of the EU as a whole, not only from an energy security perspective, but also in terms of reinforcing the stability of the eastern European region,” the complaint read, according to local media reports.

While the plan is supported by projects backers like Gazprom, France’s ENGIE, German utilities Eon and Wintershall and Austrian OMV and British-Dutch Shell, those signing on to the complaint hope that the Commission will push back on the extension based on their earlier concerns about Russian energy expansion into the region.

“Ukraine is a safe transit route. Gas should continue to flow through Ukraine,” European Climate and Energy Commissioner Miguel Arias Canete said, according to the report.