* Cabinet approves plan, parliament vote due on Jan. 7
* State pays 200,000 eur, Nord Stream 20 million eur
* Foundation headed by politicians, entrepreneur for no pay
(Adds quotes, detail from state premier after cabinet decision)
By Vera Eckert
FRANKFURT, Jan 6 (Reuters) - The German state of
Mecklenburg-Vorpommern plans to set up a foundation to help 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 Gazprom-led $11 billion pipeline would double
the existing Nord Stream 1 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.
State premier Manuela Schwesig told reporters in Schwerin
that the local coalition, made up of Chancellor Angela Merkel's
conservatives and Social Democrats, decided to launch a public
sector climate foundation.
Similar to two foundations around Nord Stream 1, it would
boost the role of renewables and gas as a bridging technology
towards cleaner fuels.
It could shield the companies involved in construction and
operations of the pipeline from U.S. sanctions by acquiring,
holding and releasing necessary hardware in its name.
"We believe that it is right to build the pipeline," said
Schwesig, adding she hoped the sanctions would be removed.
Approval by the state parliament for 200,000 euros of public
money for the foundation was expected to be obtained on
Thursday. This would be topped up by 20 million euros from the
NS2 consortium.
The foundation is to be headed by ex-state premier Erwin
Sellering, former Member of the European Parliament Werner Kuhn
and Katja Enderlein, an entrepreneur in the town of Greifswald,
on an unpaid basis.
It will be far harder for the United States to target a
state-backed foundation with measures such as freezing funds,
than private companies as it has no interest in commercial
activity beyond NS2, which is more than 90% completed.
The consortium is expected to start laying a remaining
stretch in Danish waters from Jan. 15 while the final stretch in
German waters was finished last month, Refinitiv Eikon data
tracking movements of pipe-laying ships indicated.
($1 = 0.8107 euros)
(Reporting by Vera Eckert, editing by Barbara Lewis and Emelia
Sithole-Matarise)