The EU General Court has rejected a legal challenge from Nord Stream 2 AG, the Gazprom-led consortium behind the Nord Stream 2 gas pipeline, concerning EU regulations on pipeline access and ownership.
The Swiss-based company initially filed its complaint in 2019, arguing against EU requirements for ownership separation and third-party access to pipelines. The case was dismissed in 2020, but a 2022 appeal ruling reopened the legal challenge.
In its latest decision, the court ruled that Nord Stream 2 AG knowingly invested in the pipeline despite clear indications from EU institutions and Member States that regulatory changes would apply to gas pipelines from third countries. “Nord Stream 2 AG could foresee that internal market rules would be extended to cover such projects,” the court noted in its ruling.
Construction of the multibillion-euro pipeline was completed, but operations were suspended following Russia’s invasion of Ukraine in early 2022. Just a week after the invasion began, Nord Stream 2 AG declared bankruptcy on March 1, 2022.
The pipeline’s prospects remain uncertain, compounded by alleged sabotage in late 2022. Recently, the Wall Street Journal reported that U.S. financier Stephen Lynch, a supporter of president-elect Donald Trump, is exploring a potential bid to acquire the damaged pipeline during bankruptcy proceedings.
Nord Stream 2 was jointly financed by Gazprom and major European energy companies, including Germany’s Uniper and Wintershall Dea, Austria’s OMV, France’s Engie, and Royal Dutch Shell. However, the pipeline has faced consistent criticism over its geopolitical implications and its role in Europe’s energy dependence on Russia.