Nord Stream 2 pipeline owner sues EU over Russian gas ban, alleging expropriation

Nord Stream 2 AG—the Swiss-based operator of the Nord Stream 2 natural gas pipeline system and wholly owned by Gazprom—has filed a lawsuit with the EU General Court to annul an EU decision that gradually phases out Russian gas imports, with the intent of ending them by the end of 2027.

In its filing, Nord Stream 2 AG says the EU’s ban deprives it of the opportunity to use the pipeline commercially, describing the restriction as a “de facto expropriation.” The operator argues that the EU used an incorrect legal mechanism to adopt the measure while bypassing internal dissent among member states.

The lawsuit is aimed at a major EU law passed earlier this year in response to Russia’s 2022 invasion of Ukraine. The company’s challenge also targets the EU’s approach to approving the ban, which was adopted using a reinforced majority vote—an approach Nord Stream 2 AG claims functions like a sanction and, under its interpretation, would require unanimous approval by all EU countries.

Nord Stream 2 is a dual-pipeline system designed to transport large volumes of gas annually from Russia to Germany beneath the Baltic Sea. Although the project was completed in 2021, Germany halted the pipeline’s certification shortly before Russia launched its full-scale invasion of Ukraine in February 2022, and the pipeline was never put into commercial operation.

Afterward, underwater explosions in September 2022 severely damaged both the Nord Stream 1 and Nord Stream 2 networks. Moscow blamed Ukraine, while Kyiv denied involvement. Only one of the Nord Stream 2 twin pipelines reportedly survived the blasts.

EU officials including representatives from the European Parliament and the Council declined to comment on the litigation as it remains pending.