Page 5 - FSUOGM Week 30 2021

FSUOGM COMMENTARY FSUOGM

German Chancellor
Angela Merkel and US
President Joe Biden
meet in Berlin.

pipeline, leaving just 6% left to complete. But denied, Gazprom may have to divest the pipe-
within a year, Russia’s own pipelaying vessels had line. Also under EU law, Gazprom will have to
arrived on site to finish the job. Russia is hope- offer access to the pipeline to other companies,
ful it can complete the pipeline in August and and it is unclear how it would achieve this, as
launch gas flow by the end of the year. Russian law forbids gas suppliers other than
Unsurprising, then, that there has been a Gazprom to export gas via pipeline.
growing acceptance in Washington that Nord Germany also pledged $70mn of funding
Stream 2 is all but inevitable. And while former towards joint energy projects with Ukraine, with
US President Donald Trump showed little care a key focus on renewables and energy efficiency,
for relations with allies in pursuit of US inter- as well as supporting its transition away from
ests, his successor Joe Biden is keen to reset ties coal.
with Germany, and sees a compromise on Nord Ultimately, the assurances provided by Ger-
Stream 2 as a means to achieve this. many and US on protecting Ukraine and keep-
ing Russia in check are just that: assurances.
Details There is no guarantee that Germany, especially
Under their deal announced late on July 21, under a different government, will not renege
Germany and the US stress that gas transit via on them, and Ukraine for one does not place too
Ukraine should continue beyond the expiry of much faith in them.
the latter’s current gas transit contract with Gaz- Ukrainian Foreign Minister Dmytro Kuleba
prom at the end of 2024 – potentially for a fur- described the deal as “insufficient” in a joint
ther ten years. They also vow to punish Moscow statement with his Polish counterpart, Zbigniew
if it tries to use the pipeline as a weapon against Rau.
Ukraine or other countries in Eastern Europe, “The decision to build Nord Stream 2 made
potentially through the use of sanctions against in 2015, mere months after Russia’s invasion
Russian energy exports. and illegal annexation of Ukrainian territory,
The two countries are “steadfast in their sup- created a security, credibility and political crisis
port for Ukraine's sovereignty, territorial integ- in Europe,” they said. “Currently, this crisis is
rity, independence and chosen European path,” significantly deepened by the resignation from
they said in a joint statement, and are “united in attempts to stop the launch of the Nord Stream
their determination to hold Russia to account for 2 gas pipeline.”
its aggression and malign activities by imposing “Unfortunately, the proposals to cover the
costs via sanctions and other tools.” resulting security deficit cannot be considered
Germany will also ensure that the pipeline sufficient to limit the threats created by NS2,”
complies “[with] both the letter and the spirit” of they continued. “We call on the United States
the EU’s Third Energy Package rules on unbun- and Germany to adequately address the secu-
dling and third-party access. The Nord Stream rity crisis in our region, that Russia is the only
2 operating company, a subsidiary of Gazprom, beneficiary [of]. Ukraine and Poland will work
has applied to German regulators to be certified together with their and partners to oppose NS2
as an independent operator. If this request is until solutions are developed.” ™

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