Last Updated:

Germany's E.ON Asserts Exit From Nord Stream Project Not Being Discussed

E.ON has no long-term direct supply contracts with Russian producers but buys some gas from Gazprom trading companies in Europe.

Image: AP

Germany’s largest energy firm, E.ON, on Wednesday, said that the exit from the Nord Stream project is not being discussed. This comes as an important update in the wake of Russia's invasion of Ukraine. E.ON has no long-term direct supply contracts with Russian producers but buys some gas from Gazprom trading companies in Europe. They added that the war in Ukraine could negatively impact the value of its stake in the Nord Stream 1 gas pipeline.

Chief Executive Leonhard Birnbaum said at E.On's annual press conference, "In view of the war in Ukraine, we have stopped procuring new amounts from these companies." 

Earlier, talks were going on about the implications of the Russia-Ukraine war on the Nord Stream project. E.ON holds a 15.5% stake in Nord Stream 1 via its pension fund; the pipeline is majority-owned by Gazprom and forms the main route through which Russian gas currently flows to Germany. The German company has said it mainly saw risks for commodity markets, associated credit and liquidity risks, and valuation risks for investments, including its Nord Stream 1 stake.  

Nord Stream 2, which would have doubled the capacity of gas Russia can deliver to Europe, was reportedly suspended last month by Germany in the wake of Russia's offensive in Ukraine. 

Russia says Ukraine's neutral status is being seriously discussed

Russia’s chief negotiator in talks with Ukraine says the sides are discussing a possible compromise whereby Ukraine will have a smaller, non-aligned military in the future. “A whole range of issues tied with the size of Ukraine’s army is being discussed,” Russian negotiator Vladimir Medinsky said Wednesday, according to Russian news agencies. “Ukraine is proposing an Austrian or Swedish option of a neutral state, but a state that has its own army and navy."

There was no immediate comment from Ukrainian officials. It’s not clear how such an option would work if the future Ukrainian military remains hostile to Russia. Medinsky said the issues are being discussed in the Russian and Ukrainian defence ministries. The diplomat noted that a key question is the status of Crimea, annexed by Russia, and the separatist-held Donbas region in eastern Ukraine, which Russia recognizes as an independent. Ukraine considers both parts of its territory. A new round of Ukraine-Russia talks about the war is expected later Wednesday.

Image: AP

Follow all the Russia-Ukraine War News and Headlines on Russia-Ukraine War LIVE Updates

First Published: