EU leaders say Russia-Germany gas line could break EU rules

“The commission has assessed that if Nord Stream-2 was to be constructed, it would increase Europe’s dependence on one supplier and concentrate 80 percent of Russian gas imports on one route”.

While Russia believes the expansion would improve Europe’s energy security, nine central and east European countries are warning against the plan.

“There is a letter from Lithuania and another six nations to the European Commission, asking to look into whether this pipeline does not contradict the EU’s Energy Union (…) and whether it does not run counter to the EU’s interests”, Grybauskaite told LRT on December 17.

Nord Stream got caught up in the debate over extending economic penalties on Russian Federation, with Italian Prime Minister Matteo Renzi holding up the sanctions renewal in order to air his objections to the German gas project. European Union leaders reconvened in Brussels for the final day of their year-end summit with a wide-ranging agenda including how to build greater economic unity among their 28 countries and stepping up the fight against extremism.

Renzi’s office in Rome did not respond to requests for comment and a German diplomat said only that Nord Stream was “an entrepreneurial project, in which the German state does not participate”.

“All projects have to comply with all European Union laws”.

But Tusk said the EU’s executive Commission must still conduct a legal and technical analysis to establish officially whether the Nord Stream 2 project would contravene any laws.

Gazprom announced the project in September together with Germany’s E.ON and BASF/Wintershall, France’s ENGIE, Austria’s OMV and British-Dutch Shell.

“I have made it clear to all that this is primarily an economic project”.

Ms. Merkel said that should Nord Stream 2 be built, a solution should be found that would maintain Ukraine as a transit country for Russian gas.

During Friday’s discussion, several leaders complained that Germany was supporting the expansion of Nord Stream, while an earlier pipeline project that would have bypassed Ukraine in the south was canceled amid pushback from Brussels. “That’s the political wish”, she said.

Without an extension, the existing sanctions would expire on January 31.

“South Stream was blocked, and now it needs a reasonable argument at least why South Stream is bad and Nord Stream is acceptable”, Orban said. “There are private investors for this project”, she said.

Tara Palmeri contributed to this article.