Subject: Nord Stream 2 violating the principle of energy solidarity
On 15 May 2018, Nord Stream 2, which is controlled by the Russian group Gazprom, commenced work in Germany on a second gas pipeline along the Baltic seabed in parallel to the existing Nord Stream 1. On 9 May 2018, Poland’s Competition and Consumer Protection Office launched antitrust proceedings against Gazprom and the international bodies responsible for financing the NS2 pipeline. When it is brought into operation, the pipeline will distort competition in the gas market in Poland.
A Commission document disclosed in April 2018 in connection with the antitrust proceedings against Gazprom revealed that the group had already applied monopolistic practices vis-à-vis Central European countries, such as unfair pricing and making gas supplies conditional on control of the transmission infrastructure.
NS2 prioritises economic relations between Germany and Russia at the expense of gas security for the countries of Central and Eastern Europe. The construction of NS2 ignores the rules on consultation and cooperation in the context of the Energy Union, and clearly violates the fundamental principle of energy solidarity.
1. In view of this violation of the fundamental principles of EU solidarity, what action does the Commission intend to take to ensure energy security in terms of gas supplies for all – not just some – EU Member States?
2. Why do the Commission’s ongoing antitrust proceedings against Gazprom not cover issues relating to the NS2 pipeline, even though it will strengthen the group’s dominant position in the EU gas market?
Answer given by Mr Arias Cañete on behalf of the Commission
(21 June 2018)
On 8 November 2017, the Commission tabled a proposal to amend the Gas Directive 2009/73/EC, in order to apply EU energy legislation to all gas interconnectors with third countries up to the border of the EU's jurisdiction (COM(2017)660 ) (1). This includes the Nord Stream 2 pipeline.
This proposal constitutes an important step towards the completion of the Energy Union. It strengthens the solidarity aspect of the Energy Union by creating a single regulatory framework for gas transmission in the Union, irrespective of origin. The proposal is currently undergoing the ordinary legislative procedure. In addition, EU legislation passed earlier during this mandate, such as Regulation (EU) 2017/1938 concerning measures to safeguard the security of gas supply, contributes significantly to enhancing energy security and solidarity between Member States.
On 24 May 2018 (2), the Commission adopted a decision making binding commitments offered by Gazprom that should enable the free flow of gas at competitive prices in central and Eastern Europe. Implementing those commitments addresses the Commission's antitrust concerns as communicated to Gazprom in April 2015 regarding a possible abuse of its dominant position in eight Member States (3) in violation of Article 102 (4) of the Treaty on the Functioning of the EU (TFEU).
Gazprom's other activities in the EU, such as Nord Stream 2, were not the subject of these proceedings. However, Gazprom must ensure that all its activities with an impact on competition in the EU are in full compliance with EU competition rules (5).
This also applies to its infrastructure projects such as Nord Stream 2. In any event, to be triggered, Article 102 of the TFEU requires that an undertaking both holds and abuses its dominant position on a relevant market.
⋅1∙ https://eur-lex.europa.eu/procedure/EN/2017_294
⋅2∙ http://europa.eu/rapid/press-release_IP-18-3921_en.htm
⋅3∙ Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland and Slovakia
⋅4∙ https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX%3A12008E102
⋅5∙ As with any other undertaking operating within the EU.
