There’s been a flurry of news reports lately about a new gas pipeline project that is meant to bring gas from Russia to Europe across the Baltic Sea. Nord Stream 2 is touted by Gazprom – which is majority owned by the Russian government – as “a direct link between Gazprom and the [sic] European consumers.” Gazprom also claims: “It will also ensure a highly reliable supply of Russian gas to Europe.” The pipeline’s 1,200-kilometer route will take it from Ust-Luga in the Leningrad region of Russia to Greifswald in Germany; plans are for the pipeline to be completed by next year. Germany and Finland have already green-lighted the construction of the pipeline, and permits are expected to be issued soon by Sweden and Denmark, which also are affected by its under sea route.
Critics say Nord Stream 2 will increase Europe’s dependence on Russia for energy. Moreover, it will enrich the Russian gas behemoth Gazprom at a time when Moscow has proven itself, again and again, to be a threat to European security. The United States, Poland and the three Baltic states are opposed to the project, as is Ukraine, which has been a victim on more than one occasion of Russia’s use of energy supply as a weapon.
The Verkhovna Rada on April 5 appealed to the international community to stop the pipeline, which would lead to a monopoly on the European gas market and destabilize Europe. Nord Stream 2 is to bypass Ukraine, through which much of Gazprom’s gas now flows to Europe, making Ukraine and others more vulnerable to Russia’s manipulations. It would also deprive Naftogaz Ukrainy of most of its profit, which comes from gas transit fees. President Petro Poroshenko, in an April 9 interview with Handelsblatt, a German business daily, urged Berlin to abandon plans for the pipeline, saying it would result in an “economic and energy blockade.” He also described the project as “political bribe money for loyalty to Russia.”
Meanwhile, The Financial Post of Canada and The Telegraph of the United Kingdom reported this bombshell on April 13: “Vladimir Putin’s stranglehold over European gas supplies has been laid bare by explosive EU documents, exposing deliberate violations of EU law and a pattern of political bullying over many years. The longest investigation in EU history found that the Kremlin-controlled energy giant Gazprom has used its enormous power to pressure vulnerable states in Eastern Europe and fragment the EU’s energy market with coercive pricing policies.” The newly uncovered information shows there is “no doubt that Germany has been enjoying a sweetheart deal with Gazprom, gaining a competitive advantage in gas costs at the expense of fellow EU economies and leaving frontline states at the mercy of Moscow’s strong-arm tactics.” Furthermore, “A leaked document from the European Commission paints an extraordinary picture of predatory behavior, with Gazprom acting as an enforcement arm of Russian foreign policy.”
The news article went on to accuse the European Union of “turning a blind eye as it prepares to reach an understanding with Moscow, disregarding fundamental principles of EU law.” It also quoted Prof. Alan Riley, an expert on EU energy law at the Washington-based Atlantic Council, as stating: “What the documents show is that there was systematic abuse of dominant position, and that it was clearly done for political purposes.”
Thus, it is clear that Nord Stream 2 is no simple commercial project, but an extension of the Kremlin’s power further into Europe.