Jun 12, 2025
The European Commission suggests prohibiting transactions related to Nord Stream and Nord Stream 2 in its latest sanctions package.
The European Commission is proposing a ban on transactions involving the Nord Stream and Nord Stream 2 gas pipelines from Russia to Germany as part of its 18th sanction package against Moscow, announced EC President Ursula von der Leyen on June 10. During an online briefing, she stated that this ban aims to intensify pressure on Russia due to its invasion of Ukraine.
"For the first time, we are suggesting a transaction ban for Nord Stream 1 and 2," von der Leyen remarked. This means that no EU operator can participate, directly or indirectly, in any transactions concerning these pipelines. She emphasized there would be no going back to previous arrangements.
These measures seem intended to prevent future gas flows through either pipeline system. The 55 Bcm/year Nord Stream pipeline started operations in 2011 but ceased deliveries in August 2022, with Russia's Gazprom attributing the halt to sanctions that hindered turbine maintenance. Nord Stream 2 was completed in September 2021 but never began operations due to regulatory delays.
In September 2022, both pipelines were sabotaged, rendering them unusable. Recent peace talks surrounding Ukraine have sparked discussions about possibly resuming significant Russian gas exports to Europe, especially using the intact string of Nord Stream 2. However, German Chancellor Friedrich Merz stated on May 28 that Germany would do everything possible to keep Nord Stream 2 from operating, with a government spokesperson affirming support for sanctions against it.
EU sanctions are seemingly aimed at ensuring no Russian gas reaches Europe through either pipeline. In March, Russian Foreign Minister Sergey Lavrov mentioned discussions regarding Nord Stream 2 to restore normal energy supplies, while President Vladimir Putin claimed the undamaged string of Nord Stream 2 could quickly begin operations. Nevertheless, the EC remains committed to phasing out Russian gas imports.
On May 6, the EC introduced a roadmap to eliminate Russian energy imports and indicated legislative proposals would be made in June to ban Russian gas imports by the end of 2025, affecting both new and existing contracts. The roadmap also proposed banning the remaining imports of Russian gas and LNG by the end of 2027.
Significant hurdles remain for gas to flow through Nord Stream 2, particularly the need for Germany's approval. To begin operations, legal certification is required—a process that Berlin suspended on February 22, 2022, just before the invasion of Ukraine. The German economy ministry stated in early March that it was not involved in discussions about Nord Stream 2’s future, reiterating that it was not legally approved for gas flow.
Following the halt in certification, Russian gas deliveries to Europe decreased gradually, with flows from the Yamal-Europe pipeline halted and cuts made through Ukraine during 2022. Gazprom began reducing exports via Nord Stream 1 in June 2022, citing maintenance issues, and completely stopped flows by the end of August.
European buyers had to find alternative gas supplies to meet their obligations, pushing prices to record highs in August 2022. Platts reported the benchmark Dutch TTF month-ahead price at an all-time high of Eur319.98/MWh on August 26, 2022. Prices remain relatively high, with Platts assessing the TTF month-ahead price at Eur35.62/MWh on June 9.
"For the first time, we are suggesting a transaction ban for Nord Stream 1 and 2," von der Leyen remarked. This means that no EU operator can participate, directly or indirectly, in any transactions concerning these pipelines. She emphasized there would be no going back to previous arrangements.
These measures seem intended to prevent future gas flows through either pipeline system. The 55 Bcm/year Nord Stream pipeline started operations in 2011 but ceased deliveries in August 2022, with Russia's Gazprom attributing the halt to sanctions that hindered turbine maintenance. Nord Stream 2 was completed in September 2021 but never began operations due to regulatory delays.
In September 2022, both pipelines were sabotaged, rendering them unusable. Recent peace talks surrounding Ukraine have sparked discussions about possibly resuming significant Russian gas exports to Europe, especially using the intact string of Nord Stream 2. However, German Chancellor Friedrich Merz stated on May 28 that Germany would do everything possible to keep Nord Stream 2 from operating, with a government spokesperson affirming support for sanctions against it.
EU sanctions are seemingly aimed at ensuring no Russian gas reaches Europe through either pipeline. In March, Russian Foreign Minister Sergey Lavrov mentioned discussions regarding Nord Stream 2 to restore normal energy supplies, while President Vladimir Putin claimed the undamaged string of Nord Stream 2 could quickly begin operations. Nevertheless, the EC remains committed to phasing out Russian gas imports.
On May 6, the EC introduced a roadmap to eliminate Russian energy imports and indicated legislative proposals would be made in June to ban Russian gas imports by the end of 2025, affecting both new and existing contracts. The roadmap also proposed banning the remaining imports of Russian gas and LNG by the end of 2027.
Significant hurdles remain for gas to flow through Nord Stream 2, particularly the need for Germany's approval. To begin operations, legal certification is required—a process that Berlin suspended on February 22, 2022, just before the invasion of Ukraine. The German economy ministry stated in early March that it was not involved in discussions about Nord Stream 2’s future, reiterating that it was not legally approved for gas flow.
Following the halt in certification, Russian gas deliveries to Europe decreased gradually, with flows from the Yamal-Europe pipeline halted and cuts made through Ukraine during 2022. Gazprom began reducing exports via Nord Stream 1 in June 2022, citing maintenance issues, and completely stopped flows by the end of August.
European buyers had to find alternative gas supplies to meet their obligations, pushing prices to record highs in August 2022. Platts reported the benchmark Dutch TTF month-ahead price at an all-time high of Eur319.98/MWh on August 26, 2022. Prices remain relatively high, with Platts assessing the TTF month-ahead price at Eur35.62/MWh on June 9.