Nord Stream 2: compromise between Washington and Berlin around the gas pipeline
Nord Stream 2 will connect Russia to Germany via a 1,230 km tube under the Baltic Sea with a capacity of 55 billion m3 of gas per year.
Odd ANDERSEN AFP / File
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5 mins
The Nord Stream 2 gas pipeline project had been at the heart of a geopolitical and economic battle for several years, opposing the United States and Germany, the main promoter of the project, but also the Europeans between them, as well as Russia and the Ukraine.
Until a surprising turnaround in Washington and a compromise with Berlin formalized Wednesday, July 21 to try to close this dispute.
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Nord Stream 2 will connect Russia to Germany via a 1,230 km tube under the Baltic Sea with a capacity of 55 billion m3 of gas per year, on the same route as its twin Nord Stream 1, operational since 2012 Bypassing Ukraine, the route will increase the possibilities of delivering Russian gas to Europe at a time when production within the EU is declining.
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Operated by the Russian giant Gazprom, the project, estimated at more than 10 billion euros, was co-financed by five European groups in the energy sector (OMV, Engie, Wintershall Dea, Uniper and Shell).
Germany is the main promoter of the pipeline within the EU, which it believes will help it achieve the energy transition to which it has embarked.
While making its territory a European gas hub.
American and European opponents
Ukraine fears, in the long term, of losing the income it derives from the transit of Russian gas and of being more vulnerable vis-à-vis Moscow.
The United States has from the start been strong against a development that would economically and strategically weaken Ukraine, increase the EU's dependence on Russian gas, and dissuade Europeans from buying the shale gas the Americans hope to sell them.
Europeans are divided.
Poland and the Baltic countries are worried that the EU will bow to Russian ambitions.
Even in Germany, the Nord Stream 2 is not unanimous: the Greens, who are targeting the chancellery or participation in the government after the September elections, are firmly opposed.
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Germany / Russia: the construction of the Nord Stream 2 gas pipeline divides Europe
The succession of diplomatic conflicts with Moscow, from the Navalny affair to suspicion of cyberattacks, has fueled calls to rethink the project, including in Angela Merkel's conservative party.
In vain.
A report by the German economic research institute DIW in 2018 judged the gas pipeline to be based on forecasts which "
considerably overestimate the demand for natural gas in Germany and Europe
".
A construction site almost finished
The administration of former US President Donald Trump dealt a serious blow to the work by passing a law in 2019 imposing sanctions against companies involved in the construction.
Several companies, because of these pressures, withdrew from the project, in particular on the side of the insurers covering the site.
Started in April 2018, the site was therefore interrupted in December 2019 when only 150 kilometers of tube remained to be laid in German and Danish waters.
It resumed a year later and the pipeline is now almost complete.
The work is being carried out by Nord Stream 2 AG, which has its headquarters in Switzerland.
Its CEO, the German Matthias Warnig, recently indicated that construction should be completed by the end of August.
A solution in sight
Democrat Joe Biden began his presidency on a line extremely hostile to Nord Stream 2, in line with his predecessors.
But, unexpectedly, the US administration announced at the end of May that it was giving up sanctioning Nord Stream 2 AG, responsible for operating the pipeline, removing an essential obstacle to its commissioning.
After several weeks of intense negotiations, the United States on Wednesday announced an agreement with the German government to end their dispute.
Among the main provisions: possible sanctions against Moscow in the event of a slippage and a commitment from Washington and Berlin to plead together for the ten-year extension of the measures guaranteeing the transit through Ukraine of Russian gas.
Joe Biden gave up blocking the project, believing that it was too late and that it was better to bet on the alliance with Germany which Washington wishes to ensure cooperation in other files, in particular vis-à-vis China .
Russian President Vladimir Putin and German Chancellor Angela Merkel have expressed satisfaction that the Nord Stream 2 gas pipeline between their two countries is nearing completion, the Kremlin said on Wednesday.
(With
AFP
)
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