Germany gave the nod to the “Nord stream-2”
The Federal office for shipping and hydrography of Germany on Tuesday issued a permit for the construction and operation of the pipeline in the German exclusive economic zone. In January, the Mining Agency Stralsund issued a permit for the construction and operation of the offshore section of the “Nord stream-2” in German territorial waters (within 12 nautical miles) and its land part. Thus, “Gazprom” has received all necessary approvals for the construction of “Nord stream-2” in Germany.
The position of Germany is of great importance for other countries on this important for Russia and “Gazprom” issue. On this news shares of “Gazprom” looks much better than the market, adding on the Moscow stock Exchange of 2.2%. In fact, Berlin has not given way to pressure from Washington, preferring cheap Russian gas expensive American LNG. Now the probability that the “Turkish stream and Nord stream-2” will be implemented in time became much higher.
In this case, “Gazprom” will get rid of the risks of Ukrainian transit. The loss of the Ukraine is estimated at $2.5-3 billion Plus Ukraine will have to buy gas in Europe, the price is clearly higher than the Russian. The only thing that can be done now Ukraine, is to offer “Gazprom” to trade my GTS for production in Russia. However, it is hardly possible for political reasons. Plus depreciation of the Ukrainian GTS is great, although how serious are the risks of a technogenic catastrophe on the GTS is hardly known even in Kiev.
Current price ADR “Gazprom” is $2.4, the fair price of $8. Risks remain, but the chances to earn good money increase.
The Director of analytical Department,