2020-11-10 11:25:00
NORD STREAM 2 AGAINST PENALTY $7.7 BLN
PLATTS - 09 Nov 2020 - All six companies hit with fines by Poland's anti-monopoly office UOKiK over the construction of the Nord Stream 2 gas pipeline from Russia to Germany have now appealed against the penalties imposed, UOKiK said Nov. 9.
UOKiK on Oct. 7 imposed a fine of more than Zloty 29 billion ($7.62 billion, Eur6.48 billion) on Russian gas giant Gazprom for building Nord Stream 2 without its approval, as well as a fine totaling Zloty 234 million on five European companies that helped finance the project.
The five companies are France's Engie, Austria's OMV, Anglo-Dutch Shell, and German companies Uniper and Wintershall Dea.
Gazprom said it had filed its appeal on Nov. 4, with the five European companies following suit.
"All six of the companies subject to fines by UOKiK over Nord Stream 2 have appealed the decision," UOKiK told S&P Global Platts.
The size of the fine sent shockwaves through the European gas sector, though analysts have since said it would be difficult to enforce the penalty.
Gazprom said it "fundamentally disagrees" with the position of UOKiK.
Joint venture
UOKiK said its own investigation had shown that the six companies had concluded a number of agreements regarding financing for Nord Stream 2 without having first obtained its approval to establish a joint venture for the project.
When they failed to gain UOKiK's approval, the companies decided to complete the project in a different form to work around the requirement to obtain that consent, the watchdog said.
Nord Stream 2 does not go through Polish waters but UOKiK has broad powers under the country's competition law and it has the right to rule on the business impact of the pipeline because some of the companies have assets in Poland.
In 2016, Gazprom signed agreements with the five companies to finance half of the cost of Nord Stream 2, with each of the five companies contributing some Eur950 million.
UOKiK said the companies' actions had negatively impacted competition on Poland's gas market and that the launch of Nord Stream 2 would threaten the continuity of gas supplies to Poland and raise gas prices on the Polish market.
The 55 Bcm/year capacity Nord Stream 2 pipeline remains incomplete, with a little over 150 km left to lay in Danish and German waters.
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Earlier:
2020, October, 22, 14:55:00
NORD STREAM 2: THE NEW SANCTIONS
A little over 150 km of Nord Stream 2 remains to be laid in Danish and German waters, but with the political debate becoming ever more frenzied, it remains unclear how and when the pipeline will be completed.
2020, October, 21, 17:00:00
NORD STREAM 2 UNSCHEDULED
A little over 150 km of Nord Stream 2 remains to be laid in Danish and German waters after an initial threat of US sanctions last December forced principal pipe-layer Allseas to halt work.
2020, October, 8, 12:45:00
NORD STREAM 2: POLISH PENALTY
UOKiK said its own investigation had shown that Gazprom, France's Engie, Austria's OMV, Shell, and Germany's Uniper and Wintershall Dea had concluded a number of agreements regarding financing for Nord Stream 2 without having first obtained its approval to establish a joint venture for the project.
