Baltic States – CIS, Energy, Energy Market, Latvia, Russia

Earlier this week, after hearing reports by the Defense Ministry and Environmental Protection and Regional Development Ministry that indicated a number of substantial risks to national security, and in line with recommendations provided by national security services, the Cabinet of Ministers agreed not to support any developments in the territory of Latvia associated with the Nord Stream 2 project.

The government tasked the economics minister, transport minister, environmental protection and regional development minister, and finance minister to ensure that the government's representatives on the Freeport of Ventspils board vote against any involvement of the freeport in implementation of the Nord Stream 2 project.

As reported, Ventspils and two terminals operating there, Noord Natie Ventspils Terminals and Eurohome Latvija, have received an offer to participate in the Nord Stream 2 gas pipeline project by ensuring the storage and deliveries of pipes via Ventspils port, Ventspils mayor and the port's board chairman Aivars Lembergs (For Latvia and Ventspils) said at a news conference yesterday. According to Ventspils port's estimates, Latvia could earn EUR 25 mln in total from involvement in the project.

LETA also reported, Russia's gas giant Gazprom has agreed with partners from Western Europe - British and Dutch Shell group, Austrian OMV and German Uniper and Wintershall - to build a new gas pipeline under the Baltic Sea to Germany that would bypass Ukraine, Poland and the Baltic countries. The new pipeline would double the capacity of the first Nord Stream gas pipeline connecting Russia and Germany. The project should be completed by late 2019.