New German Govt. Policy; Accompanying US in Nord Stream 2 Sanctions

2022/01/10 | Economy, interview, top news

Strategic Council Online - Interview: An analyst of international affairs said that the future of the Nord Stream 2 pipeline project is in a state of ambiguity, adding: The new coalition government in Germany, by suspending the operational process of the pipeline, is effectively moving in the direction intended by Washington and trying to use it as a pressure tool to prevent possible Russian measures against Ukraine.

Speaking in an interview with the website of the Strategic Council on Foreign Relations, Seyed Reza Mirtaher, referred to a group of US senators asking the White House to block implementation of Nord Stream 2 gas project in cooperation with the new Berlin government, as well as imposing new sanctions on the project and noted: One of the problems in Russia-Europe-West relations is the future of the 1230-kilometer gas pipeline, with a construction cost of more than 11 billion euro.

He added: Despite repeated US sanctions against the companies involved in the project, Washington in a symbolic move made recently to attract the attention of Germany as the main partner of the gas pipeline within the framework of reviving transatlantic relations, excluded “Nord Stream A J Company” and its managing director from the sanctions, but to prevent it from being completed, it continued to impose and extend sanctions on Russian companies in the project.

Ambiguity in future of Nord Stream 2 pipeline project

The expert on international affairs said: Despite the sanctions, the Russians were able to complete the pipeline in September 2021. It was expected that the operation of the pipeline for transfer of gas from Russia would be announced immediately, given that the Germans were the main sponsors of the pipeline, but several factors have left the future of the pipeline in a state of uncertainty.

Mirtaher considered the change of government in Germany and the coming to power of the new coalition government as one of the factors in changing the completion of Nord Stream 2 pipeline and continued: The new government in Germany does not have the previous government’s view on the pipeline and differences could be seen among the members of the coalition government in this regard; while the new German foreign minister had announced that the operation of the pipeline was in doubt due to non-compliance with European standards and some other issues, the German chancellor said that the German private sector is dealing with the fate of the pipeline.

Movement of new German Govt. in direction intended by Washington

He continued: The new coalition government in Germany, by suspending the operation of the pipeline, is practically moving in the direction intended by Washington, and it seems that Germany has pursued a policy of distrain against Russia. In fact, Germany has made operation of the project conditional on Russia’s non-military action in Ukraine, and is trying to tie the two issues together to use it as a pressure tool to prevent possible Russian measures against Ukraine.

Referring to the expression of the US and European concerns about the increasing concentration of Russian equipment and troops on the western and northern borders with Ukraine, Mirtaher said: The United States has strongly opposed the Nord Stream 2 gas project in recent years under the pretext that Europe will become dependent on Russian gas. Despite many efforts made against this issue, Russia currently supplies about 30 percent of Europe’s gas, and it will be very difficult to reduce such dependencies in the short and medium terms.

US attempt to replace Russia’s gas position

The expert on international affairs continued: The real target of the United States is to try to reduce presence of Russia and even remove it from the European gas market and replace its own natural liquefied natural gas for it. The United States exports liquefied natural gas to Europe, especially since American oil and gas companies have invested heavily in the shale gas extraction in recent years and has increased its export potential.

He added: Given the direct route of liquefied natural gas exports to Europe through the Atlantic, Washington is keen that Europe buys as much US liquefied natural gas as possible. However, due to cheaper and easier Russian gas exports and the existence of old gas transmission structures between them, Europe, especially Germany, wants to continue gas cooperation with Moscow, and the possibility of realization of such US request is unlikely.

Mirtaher pointed to the suspension of gas exports through the Yamal gas pipeline to Europe, which has caused an unprecedented increase in gas prices and created major problems for European citizens, and said: Now, despite the ambiguity over the fate of Stream 2 gas pipeline, the Russians are making their utmost effort to persuade and force Europe to make the pipeline operational as soon as possible, while using tools of threats and incentives; but as long as the Russia-Ukraine crisis continues unabated, Western countries, especially Germany, will continue to block operation of the pipeline.

The expert on international affairs further continued: It is not clear which side will fall short in this regard, but the harsh winter in Europe and lack of gas supply have made things difficult for Europe.

Regarding the consequences of the US pressure on Europe and Russia to block the operation of the gas project and the possibility of buying LNG gas from the United States and the strained relations between Russia and Europe, Mirtaher said: The Russian president has blamed the United States as one of the culprits in the gas crisis in Europe, and stressed that they had sold the liquefied natural gas promised to Europe in other Asian and Latin American gas markets due to higher prices and put Europe versus an action taken; therefore, Europe does not have much trust in the United States for the safe and continuous supply of liquefied natural gas.

The international affairs analyst continued: From Moscow’s point of view, it is Washington that is actually using gas as a weapon against the Europeans, and with the arrival of the cold season, instead of fulfilling its promises to supply liquefied natural gas to European markets, in order to make more profit, it sells the gas in other corners of the world.

He added: Perhaps one of the reasons why Europe, despite the intense political-military and security differences with Russia, especially after the Ukraine crisis in 2014, still wants liquefied natural gas from that country, is that the necessary gas transmission infrastructure, price and volume required by Europe, is according to their wishes, while in all such cases there are many doubts about the supply of gas through the United States direction.

According to Mirtaher, Europe is well aware that still in a distant future it will continue to depend on Russian gas exports to Europe, which accounts for one-third of its consumption, and realizing this, the Italian prime minister warned the European Union to continue engaging with Russia, because there are no tools at their disposal, whether economic or other, for deterrence.

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