The White House has signed the bill which imposes new sanctions against Russia and will de facto penalized as well European energy companies who collaborate with Russia on the construction of new oil and gas export pipelines. It targets in particular the investments which contribute directly and indirectly to the improvement of Russia's capacity to build new energy export infrastructure and pipelines. The Nord Stream 2 project is concerned while the Turk Stream pipeline is not because it has entered the construction phase.
This new sanction may affect European companies involved in the Nord Stream 2 project namely PEG Infrastruktur AG (15.5%, subsidiary of E.ON), Wintershall (15.5%, subsidiary of BASF), Gasunie (9%) and Engie (9%); the remaining 51% being owned by Gazprom. The five European energy companies have committed to providing long-term financing for half of the total cost of the project, which is currently estimated at €9.5bn, with each European company funding up to €950m. Gazprom will remain the sole shareholder of the project company, Nord Stream 2 AG.
The 1,220-km-long Nord Stream 2 undersea gas pipeline should consist of two offshore strings with a total capacity of 55 bcm/year. The project will double the throughput of the current Nord Stream route. Construction work will begin in 2018 and will be completed by the end of 2019.
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