Nord Stream 2 AG, the Swiss-based operator of the Nord Stream 2 gas pipeline, has initiated legal proceedings against the European Union to challenge a bloc-wide ban on Russian gas imports. According to reporting from Reuters, the company claims the EU’s mandate, which aims to phase out Russian gas by 2027, effectively expropriates the pipeline by stripping it of its commercial viability. The pipeline, a subsidiary of Russia’s state-owned Gazprom, remains non-operational following the 2022 invasion of Ukraine.
Why is Nord Stream 2 AG suing the European Union?
Nord Stream 2 AG argues that the EU’s legislative framework effectively prevents the company from utilizing its assets for commercial purposes. By enacting a total ban on Russian gas imports, the EU has removed the legal pathway for the pipeline to generate revenue. The company maintains that this constitutes a seizure of the infrastructure, which was built to supply 110 billion cubic meters of gas annually to Germany. The case is currently filed before the General Court of the EU.
Before the 2022 invasion of Ukraine, the European Union relied on Russia for approximately 40% of its total gas supply. By 2025, that figure had dropped to 13%, according to official EU data.
What is the current status of the pipeline infrastructure?
The Nord Stream 2 pipeline was completed in 2021 but never entered service, as German authorities blocked the project just before the February 2022 invasion. Months later, in August 2022, subsea explosions caused significant structural damage to both the Nord Stream 1 and 2 pipelines. While Russia has publicly blamed Ukraine for the sabotage, officials in Kyiv have consistently denied any involvement in the attacks on the Baltic Sea infrastructure.
How does the EU phase-out affect energy security?
The shift away from Russian natural gas represents a major realignment of Europe’s energy strategy. Following the 2022 conflict, the EU introduced policies to eliminate dependence on Russian energy by 2027. This move has forced member states to diversify supply chains, often shifting toward Liquefied Natural Gas (LNG) imports and renewable alternatives. The legal challenge from Nord Stream 2 AG highlights the ongoing friction between private infrastructure owners and the geopolitical mandates of the European bloc.
Comparison of Russian Gas Reliance
| Period | EU Reliance on Russian Gas |
|---|---|
| Pre-2022 | ~40% |
| 2025 | 13% |
Frequently Asked Questions
- Who owns Nord Stream 2? The pipeline is owned by Nord Stream 2 AG, which is a subsidiary of the Russian state-controlled energy giant Gazprom.
- Is Nord Stream 2 currently operational? No. The pipeline was blocked by German regulators in 2022 and subsequently damaged by underwater explosions.
- Why is the EU banning Russian gas? The ban is part of a broader response to the Russian invasion of Ukraine, aimed at ending the bloc’s energy dependence on Moscow by 2027.
- What does the lawsuit aim to achieve? The operator is seeking to overturn the EU regulation, claiming it prevents the commercial use of the pipeline and constitutes an illegal expropriation.
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