"Beyond violating the spirit of the EU sanctions, Nord Stream 2 [pipeline] would also undermine EU efforts to diversify away from Russian energy supplies, make Ukraine most vulnerable to gas cutoffs from Russia, and deny Kiev the transit fees that currently bring in billions of dollars in annual revenue," the report stated.
The Nord Stream 2 pipeline agreement with Germany is currently on hold, but CSIS said other agreements could undercut eastern Europe’s strength in the energy sector.
The Nord Stream 2 pipeline was envisioned to transport natural gas from Russia to Germany and elsewhere in the European Union to enhance security of supply and strengthen the internal energy market.
In October, Russia and Turkey concluded two years of negotiations on the Turkish Stream project. The project was temporarily suspended in 2015 after a Russian Su-24 plane was downed by a Turkish fighter jet in Syria, but resumed after relations between Moscow and Ankara thawed.
The CSIS report also noted the European Commission approved a contract between Hungary and Russia’s Rosatom State Atomic Energy Corporation.
The European Union, United States and some of their allies have introduced several rounds of sanctions over Russia’s alleged involvement in the conflict in Ukraine. Moscow has repeatedly stated that it is not a party to the Ukrainian domestic conflict and is not involved in the events in the region.
