Germany suspends the opening of the Russian Nord Stream 2 gas pipeline | Financial issues

Schulz said he would not provide certification to run the pipeline, which has already been completed but is still awaiting official approval from the German government.

Gas supplies to the EU are not currently affected by the German government’s decision. European Commission spokesman said. According to the spokesperson, the EU is currently in a “very safe position” when it comes to gas stocks and supplies.

Nordstream 2 can transport 55 billion cubic meters of gas from Russia to Germany. The pipeline is 1,200 km long and passes through the bottom of the Baltic Sea.

US discount

The United States has always been vehemently opposed to the project, as has Ukraine. According to the United States, Germany and Europe have become highly dependent on Russian natural gas through the pipeline.

US President Biden said earlier during a press conference with Schulz that Nord Stream 2 would not be commissioned if Russia invaded Ukraine. Ukrainian President Zelensky called for “the immediate halt of Nord Stream 2”. In Germany, the call to cancel Nord Stream 2 was already rising.

The Russian state energy company Gazprom made half the investment in the pipeline. The remainder of the total amount of approximately €10 billion will be provided by Engie, OMV, Shell, Uniper and Wintershall.

In 2011, the first Nord Stream pipeline was opened, and in 2015 it was decided to build Nord Stream 2 to increase capacity.

Relies

Europe depends about 40% on Russia for the supply of gas, previously estimated by energy experts from ABN Amro. Russia now supplies gas mainly through pipelines through Ukraine and Belarus. With Nord Stream, Germany can buy gas directly from Russia.

Nord Stream plans were drawn up by former German Chancellor Gerhard Schroeder. The Social Democrat has always had a good relationship with Russian leader Vladimir Putin. Schroeder is now a supervisor at the Russian group Rosneft and Gazprom.

Ukrainian Foreign Minister Dmytro Koiliba described German Chancellor Olaf Scholz’s decision to halt the Nord Stream 2 certification process as “morally and politically appropriate in the current circumstances”. “Real leadership means making difficult decisions in difficult times. Germany proves it,” Koleba wrote on Twitter.

Russia’s Deputy Foreign Minister Andrei Rudenko stated that “Moscow does not fear anything,” according to Interfax news agency, when asked about Berlin’s decision on Nord Stream 2. Energy Minister Nikolai Shulginov said that the large amounts of gas that Europe now gets from Russia is irreplaceable By importing liquefied natural gas (LNG) from other countries. Russian President Vladimir Putin said on Tuesday that Russia will continue to supply gas to Europe.

Russian state-owned gas group Gazprom, which owns the Nord Stream 2 project that runs through the Baltic Sea, declined to comment when asked, Reuters reported.