The EU General Court has upheld its dismissal of Nord Stream 2 AG’s legal challenge against European regulations requiring gas pipelines to comply with ownership and access rules, effectively closing a long-standing case tied to the controversial pipeline.
The Swiss-based company, primarily owned by Russia’s Gazprom, had argued the rules unfairly imposed constraints on the Nord Stream 2 pipeline, which connects Russia to Germany. Initially dismissed in 2020, the case was revisited following a 2022 appeal but has now been definitively rejected.
In its ruling, the court emphasized that Nord Stream 2 AG proceeded with investments despite clear indications of impending regulatory changes. “The company could foresee that the EU institutions and several Member States would extend internal market rules to pipelines from third countries like Nord Stream 2,” the court stated.
Construction of the pipeline was completed in 2021, but it faced growing opposition over geopolitical concerns, particularly regarding Europe’s reliance on Russian energy. Germany suspended certification of the pipeline in February 2022, days before Russia launched its full-scale invasion of Ukraine. Nord Stream 2 AG declared bankruptcy shortly thereafter, and later that year, the pipeline was severely damaged by sabotage.
Adding a new twist to the saga, The Wall Street Journal recently reported that U.S. financier Stephen Lynch, an ally of president-elect Donald Trump, is considering bidding for the damaged infrastructure during bankruptcy proceedings.
The pipeline was financed by Gazprom in partnership with European companies, including Germany’s Wintershall Dea and Uniper, Austria’s OMV, France’s Engie, and Royal Dutch Shell. Critics have long argued that the project undermined European energy security by deepening dependence on Russian gas supplies.
