German Chancellor Olaf Scholz has suspended the certification process for the Nord Stream 2 gas pipeline after Russia recognized separatist-held regions in eastern Ukraine as independent states, which the West fears is a prelude to a full-fledged invasion.
The underwater pipeline, which sends Russian gas to Europe via Germany, is built but not yet operational. It is one of the main targets of Western countries trying to put pressure on Russia to deter further military advances against Ukraine.
AP explains the main aspects of the gas pipeline.
What is Nord Stream 2?
It is a 1,230 kilometer gas pipeline to transport natural gas that goes under the Baltic Sea from Russia to the coast of Germany on that sea.
Its route is parallel to that of the previous Nord Stream gas pipeline and would double its capacity to 110,000 million cubic meters of gas per year. It means that Gazprom can send gas to the European grid without using existing pipelines through Ukraine and Poland.
The pipeline is full of gas, but awaits approval from Germany and the European Commission.
How does Scholz block the gas pipeline?
The German regulatory body must certify that the pipeline complies with European rules on fair competition. Scholz said he was suspending that approval process.
Germany was due to submit a report on how the pipeline would affect energy security, and Scholz has said he was withdrawing that report.
Why is Scholz taking action now?
Scholz, who took the helm in Germany in December, backed the project when he was finance minister to his predecessor, Angela Merkel, and had the support of her Social Democratic Party. When Russia was amassing troops near the Ukrainian border, Scholz avoided direct references to Nord Stream 2, even though the United States said the project would not move forward in the event of a Russian invasion.
But Scholz warned that Russia would suffer “serious consequences” and that sanctions had to be prepared in advance. Germany had previously agreed with the United States to take action against Nord Stream 2 if Russia used the gas as a weapon or attacked Ukraine.
The foreign minister said on Tuesday that recognition of the independence of rebel-held areas in eastern Ukraine constituted a “serious violation of international law” and that it was necessary to “send a clear signal to Moscow that such measures will not be without effect.” consequences”.
Why does Russia want the pipeline?
Russia’s large state-owned company Gazprom says the pipeline will meet Europe’s growing demand for affordable natural gas and complement existing pipelines through Belarus and Poland.
Nord Stream 2 would be an alternative to the aging Ukrainian network that Gazprom says requires refurbishment, would lower prices by eliminating transit fees paid to Ukraine, and would avoid episodes like those in 2006 and 2009, when price and payment disputes between Russia and Ukraine caused the gas supply to be cut off.
Europe is a crucial market for Gazprom, whose sales support the Russian fiscal budget. Europe needs the gas to replace coal and nuclear power plants while building renewable energy sources like wind and solar.
Why is the US opposed to Nord Stream 2?
The United States and some European allies such as Poland, as well as Ukraine, have opposed the project since before Joe Biden arrived at the White House, arguing that it increases Europe’s dependence on Russian gas and gives Moscow the possibility of using the gas as a geopolitical weapon. Europe imports most of its gas and 40% comes from Russia.
The pipeline, built during the Merkel era, has been the subject of bitterness between the United States and Germany. Biden lifted sanctions against the pipeline operator when it was nearly complete in exchange for an agreement that Germany will take action against Russia if it uses the gas as a weapon or attacks Ukraine.
In Congress, Republicans and Democrats have long objected to Nord Stream 2, one of their few points of agreement.
Does the suspension of Nord Stream 2 mean that Europeans will be cold this winter?
No. Before Scholz’s announcement, regulators made it clear that the approval process would not be completed during the first half of the year, which encompasses the winter months. That means the pipeline would not help meet heating and electricity needs in the event of a shortage.
The shortage in the current winter fuels fears of dependence on Russian gas. Russia stopped short-term sales—although it honored long-term contracts with European customers—and did not fill its underground tanks in Europe.
Can Russia cut off gas supplies to Europe in retaliation?
Just as Europe needs Russian gas, Gazprom needs the European market. Many think that, because of that interdependence, Russia will not cut off supplies to Europe, even if there is a further escalation of the Ukrainian conflict, and Russian officials have emphasized that they have no intention of doing so.
But the Ukraine crisis, coupled with winter shortages, has given European governments all the more reason to look elsewhere for their gas, for example buying liquefied gas shipped from the United States, Algeria and elsewhere.
Source: Gestion
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