The operator of the Nord Stream 2 pipeline is suing the European Union, seeking to overturn a binding law aimed at phasing out all Russian gas imports by late 2027.

In a lawsuit filed with the EU General Court, Swiss-based Nord Stream 2 AG—which is entirely owned by Russian state energy giant Gazprom—argued that the import ban effectively seizes its infrastructure without compensation.

"The applicant submits that the regulation effectively deprives it of the opportunity to use its pipeline commercially," the lawsuit stated, calling the restriction a "de facto expropriation."

The legal challenge targets a landmark law passed by the EU earlier this year to permanently sever energy ties with Moscow following the 2022 invasion of Ukraine. The regulation dismantled any prospects of reviving the multi-billion-dollar undersea Nord Stream network.

Designed to channel 110 billion cubic meters of gas annually from Russia to Germany beneath the Baltic Sea, the dual-pipeline system never reached full commercial operation. Germany halted the Nord Stream 2 project just days before Russian troops crossed into Ukraine.

Months later, in August 2022, underwater explosions severely damaged both Nord Stream 1 and Nord Stream 2. While Moscow blamed Ukraine for the attack, Kyiv has repeatedly denied involvement. Only one of Nord Stream 2's twin pipelines survived the blasts.

Russian President Vladimir Putin recently stated that the remaining line could begin pumping gas immediately if permitted.

Nord Stream 2 AG's lawsuit, originally filed April 27 and recently published in the EU’s official journal, claims the bloc used an incorrect legal mechanism to bypass internal dissent.

The EU passed the ban using a reinforced majority vote to overcome resistance from member states like Hungary and Slovakia. However, the pipeline operator argues the ban functions as a sanction, which constitutionally requires unanimous approval from all EU nations.

Spokespeople for both the European Parliament and the Council of the EU declined to comment on the pending litigation.

Before the Ukraine war, Russia supplied roughly 40% of the EU's natural gas. However, that reliance fell to approximately 13% last year due to the EU’s policy changes on Russian energy supplies to EU member states.