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Nord Stream 2 Financing Won't Depend on US Sanctions – Venture Executive

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Chelyabinsk Pipe-Rolling Plant - Sputnik International
According to an executive of the Russian-European joint venture, the anti-Russian sanctions imposed by the US may provide Nord Stream 2 with more financing options. The sanctions have made the project less dependent on Western investments.

Paul Corcoran, the CEO of Nord Stream 2 in Washington, told the German newspaper Die Welt:

"The project will be certainly funded. It is important for Gazprom, and Russia currently has a high euro liquidity."

The sanctions, imposed against Moscow by the US and the EU, have allegedly fueled the flow of euros to Russia.

Although Russia can continue to sell natural gas to the bloc for euros, it can no longer spend its foreign currencies because of the imposed trade restrictions. According to the newspaper, this surplus could theoretically be used to finance the Nord Stream 2 pipeline project if the US inhibits its NATO allies from funding the building of the pipeline from Russia to Europe.

"The economic sanctions against Russia could lead to more financing options for Nord Stream 2," Corcoran told the paper.

The US, which previously claimed that the pipeline would increase Europe’s dependence on Russia, has reportedly put pressure on the European companies involved in the project. At the beginning of June, Foreign Policy magazine had cited three sources familiar with the issue as saying that the US administration was close to slapping sanctions on energy companies from Germany and other EU countries that are involved in the construction of Russia's Nord Stream 2 gas pipeline project. However, the German economy ministry told the media that they had received assurances from the US that gas pipeline projects would be excluded from the sanctions.

READ MORE: Nord Stream 2 Gas Pipeline to Improve European Energy Security — Moscow

Nord Stream 2 is a joint venture between Russia's Gazprom, France's Engie, Austria's OMV AG, the Anglo-Dutch company Royal Dutch Shell, as well as Uniper and Wintershall of Germany.

The project involves the construction of two legs of a gas pipeline to run from the Russian coast through the Baltic Sea to Germany. The pipeline, which is due to be put into operation in 2019, will double Russia’s export capacity of 55 billion cubic meters, according to Reuters.

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