http://www.agenceglobal.com/Article.asp?Id=2684


What is Nord Stream? Very simply, it is a gas pipeline that has been laid in the Baltic Sea, going from Vyborg near St. Petersburg in Russia to Lubmin near the Polish border in Germany without passing through any other country. From Germany, it can proceed to France, the Netherlands, Denmark, Great Britain, and other eager buyers of Russia's gas.

Nord Stream is an arrangement between private enterprises with the blessing of their respective governments. Russia's Gazprom owns 51%, two German companies 31%, and 9% each for one French and one Dutch company. The proportional investments (and the potential profits) are all private.

The key element in this arrangement is that the pipeline does not pass through Poland or any Baltic state or Belorussia or Ukraine. So, all these countries not only lose whatever transit fees they could charge but cannot use their intermediary location to hold up supplies of gas to western Europe while they negotiate deals with Russia.