EU Court Rejects Nord Stream’s Legal Challenge Against Gas Pipeline Rules

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EU Court Rejects Nord Stream’s Legal Challenge Against Gas Pipeline Rules

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European Union flag infront of the European Commission (© Shutterstock/symbiot)
European Union flag infront of the European Commission (© Shutterstock/symbiot)

The European Union’s General Court dealt a final blow to the Nord Stream 2 gas pipeline project last week, dismissing a legal challenge brought by the Gazprom-led Nord Stream 2. 

The court ruled that Nord Stream 2 AG, the pipeline operator, could have anticipated the EU’s decision to extend its internal gas market rules to pipelines from third countries, including the contested project.

The pipeline, designed to transport Russian natural gas directly to Germany, was halted by Berlin last year following Russia’s invasion of Ukraine.

The EU’s gas market rules require ownership unbundling, third-party access, non-discriminatory tariffs, and transparency. 

Nord Stream 2 had argued against these regulations in 2019, but the General Court dismissed the initial case as inadmissible.

The latest ruling comes amid recent reports that U.S. businessman Stephen P. Lynch has sought a U.S. license to acquire Nord Stream 2. However, Kremlin spokesman Dmitry Peskov has indicated that Russian gas giant Gazprom, the pipeline’s primary shareholder, is unlikely to approve such a deal.