Nord Stream 2 AG, a subsidiary fully owned by Russia’s Gazprom, has filed a lawsuit with the General Court of the European Union, seeking to annul a regulation aimed at phasing out imports of Russian gas. The lawsuit was submitted on April 27 but was made public on June 15.
The company is contesting an EU regulation dated January 26, 2026, which outlines a gradual cessation of Russian natural gas imports and preparations for a ban on Russian oil. Should the court not annul the regulation entirely, Nord Stream 2 is requesting the cancellation of specific provisions within it.
According to the lawsuit, the regulation effectively prevents the company from utilizing the Nord Stream 2 pipeline for commercial purposes. The firm argues that this amounts to expropriation without compensation, violating property rights.
Additionally, Nord Stream 2 claims it is at a disadvantage compared to other pipeline operators. The company also questions the legal basis of the regulation, asserting that it is inherently sanction-related and should have been enacted through a sanctions procedure. Instead, EU institutions opted for a standard legislative process, which, according to Nord Stream 2, was a maneuver to bypass stricter requirements associated with sanctions legislation.
The lawsuit outlines six main grievances regarding the regulation: incorrect legal basis, violation of the principle of proportionality, property rights, freedom of enterprise, equal treatment of market participants, and abuse of power.
In May 2022, the European Commission introduced the REPowerEU plan, aimed at halting imports of Russian oil and gas by 2027. This initiative includes diversifying supply sources from other importing countries and developing a “joint procurement mechanism” to negotiate and secure gas contracts on behalf of participating member states.
Slovakia and Hungary have opposed the plan, with Slovakia blocking the adoption of the 18th sanctions package against Russia in July 2025 due to concerns that the measures threaten its economy and energy security.
On December 3, 2025, the EU and the European Parliament reached a preliminary political agreement on a regulation that would impose a phased ban on imports of both pipeline and liquefied natural gas (LNG) from Russia. This regulation is a key component of the REPowerEU roadmap, which also includes a gradual phase-out of Russian oil.
On December 10, 2025, representatives from EU member states finalized a compromise text for the REPowerEU regulation, which includes a complete legal prohibition on Russian gas imports, set to take effect on September 30, 2027.
Nord Stream 2 AG has initiated legal action against the EU's regulation to phase out Russian gas imports, claiming it violates property rights and creates an uneven playing field. The case underscores the ongoing tensions surrounding energy policies in Europe as the EU moves towards reducing reliance on Russian energy sources.