Video: Prof. Alan Riley's Kaunas Energy Lecture on Nord Stream 2

Professor Alan Riley in his recent Kaunas energy lecture outlines the policy and legal arguments lined up against Nord Stream 2. He points out that it is difficult to bring Nord Stream 2 within the stated Energy Union policy to ensure supply and route diversity.

Equally it is difficult to see how Nord Stream 2 fits easily with US and EU policy in relation to Ukraine. The US and EU have supported the IMF in providing $17bn to Ukraine, and is supporting a fragile government and economy with economic and political reform. Nord Stream 2 would strip Ukraine of $2bn of annual transit revenues, make the country more dependent on Russia and make it very difficult to fund reform of its energy sector.

Legally it is difficult to see how Nord Stream 2 can escape the unbundling, tariff regulation and third party access rules of EU law. It can be argued that there is a 'conflict of laws' because the pipeline, within Russian jurisdiction is subject to Russian law and there has to be negotiation on the extent of the application of EU law to the pipeline.

However, that is not the position that the EU has taken with other such pipelines. For instance, the Polish end of the Yamal-Europe pipeline is currently being subject to full third energy package certification.

Credit: VDU Vytauto Didžiojo Universitetas