FRANKFURT, Jan 6 (Reuters) - The German state of
Mecklenburg-Vorpommern plans to set up a foundation to
facilitate the completion of the Nord Stream 2 (NS2) pipeline to
bring Russian gas to Germany and to fend off the threat of
increased U.S. sanctions that halted work last year.
The $11 billion pipeline would double the existing Nord
Stream pipeline's capacity and has become a focal point of
Russia's confrontation with the West.
The United States has said Europe is undermining its energy
security by increasing its reliance on Russian gas, while Russia
says the United States is using sanctions to block the pipeline
and protect its own natural gas industry.
A spokesman for the state premier's office in Schwerin
confirmed media reports that the local coalition, made up of
Chancellor Angela Merkel's conservatives and Social Democrats,
aimed to launch a public sector foundation.
Public sector broadcaster NDR said earlier the body would
boost the role of renewables and gas as a bridging technology
towards cleaner fuels and shield the companies involved from
U.S. sanctions.
"I can confirm that the state government intends to set up a
foundation for climate protection to be considered by a cabinet
meeting today (Wednesday) and that the state parliament is due
to consider it at a meeting tomorrow," a spokesman for the state
premier's office said.
Details of the body's wider objectives would emerge later,
but a contribution to finishing NS2 was included in its agenda,
he said, adding approval by the state parliament was needed
because public sector capital is involved.
It would be far harder for the United States to target a
state-backed foundation with measures such as freezing funds,
than private companies.
NS2 is more than 90% completed.
The Gazprom-led Nord Stream 2 consortium is
expected to start laying a remaining 100 km stretch in Danish
waters from Jan. 15.
The final 2.6-km stretch in German waters has been finished,
Refinitiv Eikon data tracking movements of pipe-laying ships
indicated in December.
Western partners are Uniper, BASF's,
Wintershall Dea, Royal Dutch Shell, Austria's
OMV and Engie.
($1 = 0.8107 euros)
(Reporting by Vera Eckert, editing by Barbara Lewis)
