The Russians had no choice. Had to abandon agreements with potential foreign shareholders of the Nord Stream project-2. They blame it on Poland.
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Gazprom refused agreements with foreign shareholders
The Board of Directors of Gazprom on Friday decided to withdraw from the agreement on establishing the joint stock company Nord Stream-2 with Western companies – the French Engie, Austrian OMV, the Dutch Shell and the German Wintershall Uniper. They had owned a 10 percent stake, Gazprom’s share would be 50 percent. Due to this, Western firms would be able to participate in financing the construction of a gas pipeline under the Baltic sea. The project is estimated at nearly 10 billion euros.
These plans put an end the decision of the Polish office for the protection of the rights of consumers and competition (UOKiK), which presented their objections to the creation of joint-stock companies. According to Polish experts, such an agreement would violate the principle of equality of access to the gas market and would give benefits to only one supplier – Gazprom.
After the decision of Poland, the Russian side has long convinced the partners that nothing has happened and the agreement is valid, but in light of the European legislation objections of the poles really do make it impossible to create joint-stock companies.
Now Gazprom is looking for other ways to attract investment from Western firms. In October, Alexey Miller met with the heads of the companies not held of the shareholders. From them he wanted to confirm further interest in the project. However, nothing concrete had been reached, and no information on the found solution has not been received.
In a situation when revenues from gas exports fall, Gazprom does not have sufficient funds to independently Finance the project. This year he’s already announced the reduction of funding for the gas pipeline to China. Wednesday and Thursday Gazprom spent in London and Paris road show of its Eurobonds worth 1 billion euros. Organizers were Bank of China, Gazprombank, J. P. Morgan, UniCredit Bank.
