How important is the Russian Nord Stream 2 pipeline for Europe?

The submarine directly connects Russian natural gas sources to Europe via Germany and is completed but not yet operational. It has become a central theme as Western governments try to prevent a Russian attack on its neighbor, Ukraine.

In the past, he has been a source of tension between the United States, which opposed the project, and Germany. Chancellor Olaf Scholz said all options were on the table, but did not mention the Nord Stream 2 pipeline at a joint news conference with President Biden in Washington. If Russian tanks enter Ukraine, “there will be no more Nord Stream 2,” President Biden said Monday. Chancellor Scholz stressed the need to keep sanctions somewhat evasive in order to put pressure on Russia in order for it to reduce tensions.

These are the most important aspects of the Russian pipeline:

What is Nord Stream 2?

A 1,230-kilometer-long natural gas pipeline under the Baltic Sea, stretching from Russia to the Baltic coast of Germany.

It would double the capacity of the previous Nord Stream pipeline, delivering 110 billion cubic meters of gas a year, and bypass Ukraine and Poland, which would lose the benefits of Russian natural gas transit tariffs through their territory. They also say the project would increase Russia’s economic influence over Europe.

The pipeline is filled with natural gas, but has not yet been put into operation because it is awaiting approval by German utility regulators and the European Commission.

What is Russia’s interest in the Nord Stream 2 pipeline?

The state-owned company Gazprom says the pipeline will meet Europe’s growing needs for affordable natural gas and complement the existing pipeline running through Belarus and Ukraine.

Europe imports most of the natural gas it consumes, and about 40% of the amount imported comes from Russia. Nord Stream 2 would offer an alternative to Ukraine’s outdated system, lower costs by saving on transit tariffs paid in Ukraine and Poland, and avoid short cuts in natural gas supplies, such as those occurred in 2006 and 2009 due to price and payment disputes between Russia and Ukraine.

Why is President Biden against the Nord Stream 2 pipeline?

The United States, NATO’s European allies like Poland and Ukraine have opposed the project before President Biden’s administration did so. They say this gives Russia the opportunity to use natural gas as a geopolitical weapon.

President Biden lifted sanctions against the Nord Stream 2 pipeline operator when it was almost finalized in exchange for a deal by Germany to act against Russia if it uses natural gas as a geopolitical weapon or attacks Ukraine. But the United States continues to think that “Nord Stream 2” is a bad idea.

Meanwhile, Chancellor Scholz, who took over Germany in December, backed the project when he was finance minister in the government of his predecessor Angela Merkel. His Social Democratic Party has also supported the Nord Stream 2 pipeline project.

While Chancellor Scholz did not specifically mention the Nord Stream 2 pipeline, he said Russia would face “serious consequences” and that sanctions should be ready in advance.

How would President Biden block the Nord Stream 2 pipeline?

The United States can impose severe financial sanctions, penalizing anyone or any company doing business related to the pipeline, effectively intimidating banks and businesses, and making Nord Stream 2 impossible to operate. President Biden has not said whether this is the path he can follow. Asked on Monday how America would block something that is under German control, Mr Biden said: “I promise you, we will be able to do that,” without elaborating. Chancellor Scholz added, “Rest assured that there will be no measures around which we will have a different approach. We will act together. “

Republicans and Democrats in Congress have long opposed the Nord Stream 2 pipeline because of its influence in Russia over Europe. They have been divided for months over when the Nord Stream 2 pipeline sanctions should be imposed, whether they should be imposed now or only if Russia invades Ukraine. Proponents of the bill have declined to comment on the compromise they are working on.

In Germany, the approval process has been presented as a strictly legal, not political, decision, raising the question of what mechanism could be used if Russia attacks Ukraine. In Europe, sanctions against Russia for annexing the Ukrainian peninsula of Crimea in 2014 were imposed after reaching a compromise at European Union level.

Will the Nord Stream 2 pipeline help solve the natural gas supply crisis in Europe?

The commissioning of “Nord Stream 2” would not immediately solve Europe’s problem with shortages of natural gas supply. As regulators will not approve it for months, the Russian pipeline cannot help meet its heating and electricity needs this winter as the continent faces natural gas shortages. To solve this problem, Gazprom needs to send more natural gas to Europe through existing pipelines.

Shortages this winter have continued to raise concerns about Russia and natural gas. Russian President Vladimir Putin has said the absence underscores the need for swift approval of the Nord Stream 2 pipeline. Russia cut short-term natural gas sales, even though it fulfilled long-term contracts with European customers, and failed to replenish its underground storage in Europe.

Some analysts say Russia needed to replenish its winter reserves first, and Gazprom has emphasized its role as a reliable long-term supplier. Whatever the motive, Mr. Putin’s comments did not allay concerns that Russia is prone to using natural gas for political reasons.

Does Russia have control over natural gas?

Although Europe needs Russian natural gas, Gazprom, on the other hand, relies on the European market for sales to support the Russian government’s budget. And the European Union has been able to force Gazprom to abide by many of its anti-monopoly rules in recent years.

This interdependence is why many experts believe that Russia will not cut off natural gas supplies to Europe even if the conflict over Ukraine escalates, and Russian officials have underlined that they do not intend to do so.voa

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