Europe’s Nord Stream 2 pipeline faces new hurdles

Subject

Nord Stream 2 update.

Significance

A bill passed by the Danish parliament on November 30 could allow lawmakers to block pipelines such as the controversial Russian-European Nord Stream 2 from using Danish territorial waters out of security or foreign policy concerns. This would may force the Nord Stream 2 project company to find an alternative route for the undersea natural gas pipeline, raising further questions about the project’s viability.

Impacts

• US sanctions could make it harder for Gazprom to secure international financing for the project early next year.
• EU-US ties may suffer as supporters of the project are upset with what they see is unlawful US interference in an internal European issue.
• The project could pose security concerns in the Baltic Sea region where tensions between NATO and Russia are running high.