Gazprom says sanctions will not stop Nord Stream 2 pipeline

MOSCOW, Reuters—The $11-B Nord Stream 2 expansion project to add a second Russian trans-Baltic gas export pipeline will be implemented regardless of how new US sanctions are interpreted, an official at Gazprom said.

Gazprom's officials also said that the newly imposed sanctions by the US did not bar the company from borrowing abroad.

The US has introduced several rounds of sanctions against Russian companies and individuals for Moscow's involvement in the Ukraine crisis and for alleged interference in the US presidential elections in 2016.

The latest set of US punitive measures was imposed on Moscow in August. The legislation includes sanctions on foreign companies investing in or helping Russian energy exploration, and cut the period for which US-based entities can provide finance to Russian energy firms from 90 d to 60 d.

Earlier this year, Uniper, Wintershall, Shell, OMV and Engie agreed to each loan 10% of the cost of the pipeline.

 

 

Gazprom will remain the sole shareholder in Nord Stream 2, shouldering 50% of the cost of the pipeline. The conduit will have the capacity to carry 55 Bcm of gas into a terminal in Germany and is due to start operating in 2019.

Gazprom also hopes to produce more than 460 Bcmy of natural gas in 2017, up from the previous forecast of more than 450 Bcmy.

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