Western Europe

Gas prices skyrocket in Europe after Germany blocked Nord Stream 2 approval

01:02, 17 November 2021
Gas prices skyrocket in Europe after Germany blocked Nord Stream 2 approval Photo: cultureru.com

Prices surged by over 15% after Germany’s agency Bundesnetzagentur had suspended the certification procedure of the Russian gas pipeline.


Gas prices in the European Union and the UK have grown by 17% after the German Federal Network Agency Bundesnetzagentur suspended the approval procedure for Russia’s natural gas pipeline Nord Stream 2.

According to the agency, the pipeline’s functioning had to be organized according to German law and in a corresponding legal form before launching the project worth around €10bn ($11.3bn).

“Following a thorough examination of the documentation, the Bundesnetzagentur concluded that it would only be possible to certify the Swiss operator of the pipeline if that company was organized in a legal form under German law,” the regulator said in a statement.

The agency says that the assets of the Switzerland-based parent company Nord Stream 2 AG had to be transferred to its German subsidiary. Now Nord Stream 2 is expected to be delayed for several months before it can finally be examined and approved by the European Commission.

The EU is facing a grave energy crisis and has seen gas prices increase several times this year. Earlier, Belarusian President Alexander Lukashenko threatened to cut Russian gas coming to Europe over the migrant crisis at the Belarus-Poland border.