Page 5 - FSUOGM Week 23

FSUOGM COMMENTARY FSUOGM

Russia has dispatched
its own pipelaying
vessels to finish Nord
Stream 2.

have their US assets frozen and visas blocked. to partially sell the pipeline and provide third-
At this late stage, though, it is unclear whether party access to its capacity. Polish regulators have
the sanctions would have any impact. But this is also warned they may impose a fine on Gazprom
not to say the project does not face challenges. for not co-operating in an investigation into the
Russia is expected to use two of its own pipe- pipeline’s financing.
laying vessels, the Akademik Cherskiy and For-
tuna, to complete the pipeline. Ship-tracking Straining ties
data shows that both ships are now stationed at Whether or not US sanctions make finishing the
the German port of Mukran, which Gazprom pipeline harder, they are sure to irk Germany.
has been using over the years as a storage base Nord Stream 2 enjoys broad support in the coun-
for Nord Stream 2’s pipes. try, which is phasing out both coal and nuclear
Cherskiy was owned by Gazprom’s shipping power, and wants to bolster its use of gas and
subsidiary Gazprom Flot but has been trans- renewables to replace them.
ferred to a company called STIF, in an apparent German Economy Minister Peter Altmaier
effort to remove the gas company from possible criticised Washington in late May for “escalating
sanctions. STIF was connected with Gazprom as this sanctions threat, which is extraterritorial
of April 1, according to Russian records, but it and thus in conflict with international law.”
is unclear whether this is still the case. Fortuna, Klaus Ernst, chairman of the German parlia-
meanwhile, belongs to a Russian services vessel ment’ energy committee, went further, saying
operator called Mezhregiontruboprovodstroy that Berlin might respond to the sanctions with
(MRTS). punitive measures of its own.
Akademik Cherskiy appears to have already “If this doesn’t finally stop, then we would
been upgraded with a dynamic positioning sys- have to think about serious measures to protect
tem (DPS) required to work in Danish waters, ourselves. For instance, punitive duties on natu-
where the remainder of Nord Stream 2 will be ral gas from the US are possible,” he told Russian
built. However, Moscow-based Sova Capital press on June 5. “The behaviour of the US in this
noted in a recent research report that its crane issue should no longer be seen as a friendly act; it
can only lift pipes up to 32 inches in diameter, is an offence against the sovereignty of Germany
whereas Nord Stream 2’s pipes are 48 inches in and the EU.”
diameter. Relations between Germany and the US
This could mean Gazprom attaches Cher- have often been strained during Trump’s presi-
skiy to Fortuna, which has a larger crane, to dency. The pair have clashed not only over Nord
finish construction. But doing so could render Stream 2 but also US calls for Germany to raise
Cherskiy’s DPS unusable, meaning it would its defence spending, among other issues.
have to be anchored, Sova’s Mitch Jennings German Chancellor Angela Merkel thwarted
writes. Anchoring the vessels would require Trump’s plan to host a G7 meeting at the White
a further permit from Denmark owing to House this month. And on June 5, Trump
the suspect large amount of World War II ordered the US military to remove 9,500 troops
munitions in the area. Gazprom would be from Germany, although Washington insisted
unlikely to pursue this option given how long that the move was the result of months of prepa-
it took to get the earlier permits from Danish rations, rather than because of tensions between
regulators. the two allies.
Nord Stream 2 also faces regulatory head- Germany’s relationship with the US is “com-
aches. An EU court has rejected Gazprom’s plicated,” German Foreign Minister Heiko Maas
request for the pipeline to receive a waiver from said on June 7, saying that the withdrawal of US
EU energy rules. This means Gazprom may have troops was regrettable. ™

Week 23 10•June•2020 www. NEWSBASE .com P5