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EU leaders sign letter objecting to Nord Stream-2 gas link

Wed, 16th Mar 2016 14:20

* EU summit talks to debate energy security

* Nord Stream-2 generated heated debate at Dec summit

* European Commission cannot confirm receipt of letter

By Andrius Sytas

VILNIUS, March 16 (Reuters) - Eight EU governments havesigned a letter objecting to the Nord Stream-2 project thatwould double the amount of gas shipped directly from Russia toGermany, according to a document seen by Reuters.

The letter, addressed to European Commission PresidentJean-Claude Juncker, reignites a debate that has pitcheddominant EU member Germany against central and eastern Europeannations.

If the project goes ahead, Nord Stream-2 would generate"potentially destabilising geopolitical consequences", theletter says.

The European Commission said it could not confirm receipt ofthe letter.

"The Nord Stream-2 project that is currently underpreparation can pose certain risks for energy security in theregion of central and eastern Europe," the letter, dated March7, says.

"It would strongly influence gas market development and gastransit patterns in the region, most notably the transit routevia Ukraine."

Russia's gas export pipelines have become intenselypolitical because of the conflict in Ukraine.

Ukraine is the transit route for about half of the gasRussia's Gazprom sells to the European Union, whichrelies on Russia for roughly a third of its supplies.

The copy of the letter seen by Reuters is signed by theprime ministers of the Czech Republic, Estonia, Hungary, Latvia,Poland, Slovakia and Romania and the president of Lithuania.

Two EU sources, speaking on condition of anonymity, saidCroatia had also signed a later version of the letter, but thiscould not immediately be confirmed with the Croatian government.

EU leaders meet for summit talks in Brussels on Thursday,when energy security is expected to be discussed.

Nord Stream-2 generated heated debate at summit talks inDecember following another letter sent to the Commission.

European Council President Donald Tusk of Poland said thenit would be up to the Commission to make a final decision onlegality. However, in his view Nord Stream-2, backed by Gazprom,E.ON, Wintershall, Shell, OMV andEngie, flouted EU rules.

Gazprom and some utilities say Nord Stream-2 is the mostpragmatic solution to shoring up Europe's energy security. TheCommission has said it is assessing its legality.

German Vice Chancellor Sigmar Gabriel travelled to Polandearly this year where he promised the new pipeline would goahead only if Russia did not cut off Ukraine and easternEuropean gas flows.

Gazprom already sends gas to Germany across the Baltic Seavia the Nord Stream pipelines. Nord Stream-2 would add a secondtwin subsea pipeline from Russia to Germany, doubling capacityto 110 billion cubic metres per year.

(Additional reporting by Barbara Lewis and Foo Yun Chee inBrussels; Writing by Barbara Lewis; Editing by Dale Hudson)

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