The Nord Stream 2 pipeline, designed to double natural gas supplies from Russia to Germany, has become a key negotiating tool for the West to prevent Moscow from invading Ukraine.
The pipeline, which Germany is defiantly pursuing despite criticism from the US and Eastern Europe, was completed last year but still requires official approval.
Germany has now issued a clear warning that it will not allow Nord Stream 2 to become operational if Russia invades Ukraine, despite a severe energy crisis that has pushed up gas prices in Europe.
Here’s a look at the history of the pipeline, which critics say will increase Europe’s dependence on Russian gas and which Ukraine has dubbed a “geopolitical weapon.”
What is it?
The 1,200-kilometer (745-mile) submerged Nord Stream 2 runs from Russia’s Baltic Sea coast to northeastern Germany, following the same route as Nord Stream 1, which was completed over a decade ago.
Like its twin, Nord Stream 2 will be capable of channeling 55 billion cubic meters of gas per year from Russia to Europe, improving the continent’s access to relatively cheap natural gas at a time of declining domestic production.
The Nord Stream 2 pipeline, designed to double natural gas supplies from Russia to Germany, has become a key negotiating tool for the West to prevent Moscow from invading Ukraine. Pictured: A map showing the route of the pipeline
Russian giant Gazprom has a majority stake in the €10 billion ($12 billion) project. The German Uniper and Wintershall, the French Engie, the Anglo-Dutch company Shell and the Austrian OMV are also involved.
The pipeline was completed in September 2021, but German authorities suspended the permitting process in November, saying it must first comply with German law.
The operating company behind the project, Switzerland-based Nord Stream 2 AG, said this week it had set up a German subsidiary to move forward despite rising diplomatic tensions.
Why is it controversial?
Nord Stream 2 bypasses Ukraine’s pipeline infrastructure, depriving the country of around €1 billion a year in gas transit fees and, Kiev fears, removing a key control over potential Russian aggression.
Ukraine, which has been at odds with Russia since Moscow annexed Crimea in 2014, also believes that Nord Stream 2 is being used by Russia to exert political pressure.
In past disputes with Russia, Ukraine’s gas supply has been cut several times.
The US shares these concerns. As have several European nations, notably Poland and Eastern European countries, who fear over-reliance on Moscow for energy security.
Analysts are now divided over Nord Stream’s economic and environmental benefits.
A 2018 report by German think-tank DIW said the project was unnecessary and based on forecasts that “significantly overestimated Germany’s and Europe’s natural gas needs”.
Why was Germany so excited?
Europe’s largest economy imports around 40 percent of its gas from Russia and believes the pipeline can play a role in the transition from coal to nuclear.
Former German Chancellor Gerhard Schröder chairs Nord Stream’s Shareholders’ Committee.
Germany’s previous government, led by Angela Merkel, fended off calls to abandon the project even as tensions with Russia mounted over espionage allegations and the poisoning and imprisonment of Kremlin critic Alexei Navalny.
Now that energy prices are skyrocketing across Europe – and Russia is reportedly cutting back on existing gas supplies to put pressure on the West – shutting down Nord Stream 2 seems like a bigger risk than ever.
What do other countries think?
US President Joe Biden opposes Nord Stream 2, calling it a bad deal for Europe and a security risk.
US sanctions against Russian ships laying the pipeline had long successfully delayed Nord Stream 2 and angered Germany.
But Biden, eager to rebuild transatlantic ties in the wake of Donald Trump, unexpectedly waived sanctions on the Russian-controlled company behind the project last year.
The pipeline, which Germany is defiantly pursuing despite criticism from the US and Eastern Europe, was completed last year but still requires official approval
Meanwhile, Ukrainian President Volodymyr Zelenskyy has long insisted that Nord Stream 2 poses a serious global security threat.
“We view this project solely through the prism of security and see it as a dangerous geopolitical weapon of the Kremlin,” he said last year.
What’s new?
Amid rising tensions with Moscow over Russian troop deployments on the Ukrainian border, the new German government led by Chancellor Olaf Scholz of the centre-left Social Democrats has finally brought about a change in Germany’s stance on Nord Stream 2.
On his first day in office, Scholz warned of “consequences” for the pipeline if Russia took action against Ukraine.
This week, German Foreign Minister Annalena Baerbock told parliament that her government, along with allies that would include Nord Stream 2, “is working on a strong package of sanctions.”
In Washington, a senior official also expressed confidence that an invasion would prevent Germany from activating the multibillion-dollar project.
“Should Russia invade Ukraine one way or another, Nord Stream 2 will not move forward,” said Victoria Nuland, Secretary of State for Political Affairs.
