Regulatory Aspects

As a cross-border project, Nord Stream is subject to international conventions and national legislation in each of the countries through which it passes.

Before construction starts, an Environmental Impact Assessment (EIA) will be completed. This is a detailed study of environmental aspects in a transboundary context. The process is governed by international legislation — Espoo Convention, Council Directive 97/11/EC of 3/3 1997 and national permits and licences.

The Parties of Origin. under the Espoo Convention are Russia, Finland, Sweden, Denmark and Germany. Countries other than Parties of Origin which may potentially be affected by transboundary impact of the project are Affected Parties and these include Estonia, Latvia, Lithuania and Poland.

Nord Stream is subject to environmental impact assessment procedures in the Parties of Origin under the terms of their respective national regulations. Countries considered as Affected Parties may participate in environmental impact assessment in a transboundary context.

Another key international convention is The International Co-operation for the Protection of the Marine Environment of the Baltic Sea, generally referred to as the Helsinki Convention. Its aim is to protect the marine environment in the Baltic Sea, and the governing body is HELCOM.

The first step of the Environmental Impact Assessment (EIA) process was submitting a Notification in a transboundary context in accordance with the Espoo Convention. This document was presented to all Baltic Sea countries in November 2006 and published on the corporate website.

Afterwards a series of international consultations were carried out in the Baltic Sea countries. As a result, the company has received 129 comments from national authorities and general public which focus on the impact on the seabed and commercial fisheries as well as on dumped and residual munitions – issues which Nord Stream and its shareholders have addressed and researched for some years. The comments will be analyzed and incorporated into the final EIA report required under Espoo. The work on the report should be finished in 2008.