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Nord Stream 2 gas pipeline, she said on December 14.
This is the first time a member of the German government has explicitly linked the delay of the project’s certification to the ongoing crisis between Russia and Ukraine.
European gas futures surged 11% at the news, and are now nearly 400% higher than at the beginning of 2021.
On November 16, Germany’s federal energy regulator suspended the certification of Nord Stream 2, which must occur before any gas can flow through the pipeline. The regulator said that Nord Stream 2 AG, the Russian-owned, Swiss-registered company responsible for the project, did not meet German energy law and needed to register a German subsidiary.
Baerbock told ZDF that the three coalition parties forming the new government agreed that “as things stand at the moment, this pipeline can’t be approved because it does not fulfill the requirements of European energy law.”
Germany has had a new center-left coalition government led by Social Democrat Chancellor Olaf Scholz since December 8, after the culmination of Angela Merkel’s 16 years at the country’s helm.
Baerbock’s Green Party, who have consistently opposed Nord Stream 2, are one of the coalition partners. The Free Democratic Party, a fellow coalition partner, also opposes the pipeline, which puts significant pressure on the traditionally pro-Nord Stream 2 Social Democrats.
2.3 Ukraine’s Energy Ministry initiates law on temporary administration on electricity companies
Ukraine’s Energy Ministry posted on its website on Dec. 1 a draft law allowing the introduction of temporary administrations at electricity companies in case the activity of such companies threatens the security of the electricity supply in Ukraine. Potential threats to the electricity supply, according to a separate Ministry resolution, include, among others, the disconnection or damage of electricity networks, low fuel stockpiles at power plants (below the normative level) and the decrease of the aggregate supply of generating capacities below a safe level.
The daft bill stipulates that in case the activity of an electricity producer, distributor or supplier threatens the stability of the energy system, the ministry and the Cabinet might introduce temporary administration at such electricity company. The temporary administration is introduced for no more than six months, but its tenure can be extended in order to fully remove identified threats. During the temporary administration, all governing bodies of such companies lose their power. Temporary administration will be performed by a company controlled by the state.
This legal initiative, beyond doubt, is aimed at intimidating the biggest private electricity holding DTEK Energy (DTEKUA), which controls 8 of 12 coal-fired thermal power plants in Ukraine. Besides DTEK, Donbasenergo (DOEN UK, owning one power plant), Kyivteploenergo (owning two heat and power
8 UKRAINE Country Report January 2022 www.intellinews.com