COPENHAGEN, Denmark (AP) – Denmark said Wednesday that it is giving permission for a joint German-Russian underwater gas pipeline to be laid to through its territory, in a blow to the United States, which had fiercely opposed the project.
The decision by the Danish Energy Agency to approve the Nord Stream 2 pipeline’s route is a victory for the governments of Russia and Germany, which had staunchly supported it.
The plan is to transport natural gas about 1,200-kilometers (746-miles) through the Baltic Sea from Russia to Europe has come under fire from U.S. President Donald Trump’s administration and several European countries, who argue that it could increase Europe’s dependence on Russia as a supplier of energy.
The government agency said it had granted a permit to Switzerland-based Nord Stream 2 “to construct a section of the Nord Stream 2 natural gas pipelines on the Danish continental shelf southeast of Bornholm in the Baltic Sea.”
Washington, which wants to sell its liquefied natural gas to Europe, has threatened sanctions against companies involved in the undersea pipeline.
While the pipeline is wholly owned by Russian gas giant Gazprom, half of the project’s 8 billion euro ($8.9 billion) cost is covered by five European energy and chemicals companies including Shell, BASF and ENGIE.
Germany, Europe’s biggest economy which is also the world’s biggest importer of natural gas, already relies heavily on Russian gas. So far, Chancellor Angela Merkel has deftly kept the pipeline off the table while imposing sanctions against Russia for its actions in Ukraine.
Asked whether any political obstacles to the project remain after the Danish decision, German government spokesman Steffen Seibert said: “We have always said that there is a political dimension to Nord Stream 2, and we have always said that gas transit through Ukraine must have a future.”
Seibert noted that Merkel discussed the issue with Russian President Vladimir Putin two days ago, and said Germany continues to support three-way talks between Russia, Ukraine and the European Commission on gas transit.
The Nord Stream 2 pipeline starts in Russia and passes through Finnish, Swedish, Danish and German marine areas before going ashore at the German coast. It can transport 55 billion cubic meters of natural gas per year.Â
Russia, Finland, Sweden and Germany earlier have issued permits.
Geir Moulson in Berlin contributed to this report.