FahadKhan

Nord Stream 2 Agreement

The pipeline construction agreement was signed 10 days before the federal election. On 24 October 2005, a few weeks before Schroeder`s resignation as Chancellor, the Federal Government guaranteed the cost of the Nord Stream project to be covered by one billion euros if Gazprom were to be insolvent with a loan. However, this guarantee expired at the end of 2006 without the need. [155] Shortly after his resignation, Gerhard Schroeder agreed to chair the shareholders` committee of Nord Stream AG. This was widely described by the German and international media as a conflict of interest[157][158] the consequence of the fact that the pipeline project could be imposed on Germany rather than for personal benefits rather than on improved gas supply. The European Commission has requested information on the German government`s guarantee. Despite years of exhaustive investigation, no formal charges have been laid against any party. [155] On April 24, 2017, Nord Stream 2 AG signed the financing agreements for the Nord Stream 2 pipeline project with ENGIE, OMV, Royal Dutch Shell, Uniper and Wintershall. These five European energy companies will provide long-term financing for 50% of the total cost of the project. In the first six months of 2020, the Croatian EU Presidency will follow the process of modernising the Energy Charter Treaty (ECT) – a crucial agreement that could affect how the controversial Russian Nord Stream 2 pipeline is operated. From a legal and procedural point of view, this political development at EU level differs from the authorisation procedures of Nord Stream 2 implemented by the competent national authorities of the countries under the jurisdiction of Nord Stream 2. These procedures are defined in detail by legal criteria based on a legal framework of EU legislation, international conventions and national legislation. None of the applicable authorisation laws require an international agreement between the EU and Russia.

Therefore, the political procedure at EU level is not linked to national authorisation procedures. The Nord Stream 2 pipeline in the Baltic Sea is highly symbolic and represents the willingness of Germany and other European partners to cooperate with Russia.