Russ Oil-Gas

Sep. 21, 2007 - Kommersant - Estonia has refused to allow Nord Stream AG to carry out geological exploration in its territorial waters and economic zone. The official reason for the refusal is that activity might lead to the disclosure of the volume of resource reserves in Estonia, which is a state secret. Nord Stream responded that it would lay its natural gas pipeline in Finnish waters. The Estonian cabinet came to its decision yesterday. Oddly, the Estonian Foreign Ministry had prepared a draft of a decision in favor of Nord Stream, which cited the “long-term interests of the Estonian people and state.” Estonian Foreign Minister Urmas Paet stated that “We decided to say no a long time ago.” Paet explained that, while the overwhelming majority of the 20 ministries and other organizations consulted for the decision were in favor of allowing the pipeline to be laid, the majority of the ministers were against it, many for openly political reasons. It was also pointed out that the pipeline would require increased border patrols and give Russia, which would have the right to defend the pipeline with weapons, control over shipping in the Baltic Sea as well. Only the gas company, Eesti Gaas, supported the pipeline. Eesti Gaas is controlled by Gazprom and E.On. Finnish Prime Minister Matti Vanhanen stated in Tallinn last week that Finland was prepared to grant Nord Stream all necessary permits to use that country's waters.