The current crisis in UkraineĪlready controversial, the Nord Stream 2 project has taken on greater significance amidst the current crisis in Ukraine. In July 2021, Germany and the US reached an agreement to prevent the pipeline “ being used as a weapon” against Ukraine. The direct supply of gas to Europe via Nord Stream 2 would allow Russia to largely bypass Ukraine, if it so chose, which the Ukrainian Government has described as akin to an “economic and energy blockade”.Īs such, there has been pressure to protect Ukraine as a gas transit country. Transit fees are thought to account for almost 3% of Ukraine’s GDP, which will bring an expected revenue of $2-3 billion annually over the next five years. Although not a huge importer of Russian gas, Ukraine is a major transit country of current Russian gas pipelines into Europe. Nord Stream 2 has implications for Ukraine. Allegations which the Kremlin has denied. ![]() In recent months, President Putin has been accused by the EU of “weaponising” Russian gas supplies (PDF) to Europe in order to keep prices high and get the pipeline approved by EU regulators. However, the US, UK and the EU have all expressed concerns over its geopolitical implications.Ĭritics view the pipeline as a political project of the Kremlin and part of a broader geopolitical strategy to undermine the West by increasing European reliance on Russian gas supplies and potentially giving Russia leverage over security of supply. Russia and Germany’s longstanding view has been that the pipeline is a purely economic project. Opposition to the pipeline has been fierce. However, the pipeline has not been certified by German regulators and is not yet operational. After nearly five years, and at a reported cost of $11 billion, the pipeline was eventually finished in September 2021. Nord Stream 2 AG estimates this will be enough to supply some 26 million European households and has described the pipeline as essential to enhancing “the EU’s security of supply of natural gas” (PDF).Ĭonstruction on the pipeline began in 2018 but it has been delayed due to protracted legal battles and the imposition of US sanctions against companies working on the project in 2019. It follows a similar route to the original Nord Stream pipeline that was completed in 2011 and, once operational, NS2 is expected to double the total capacity of that route to 110 billion cubic metres (bcm) per year. ![]() It was launched in 2015 by Nord Stream 2 AG, a subsidiary of the Russian state-controlled company Gazprom. Nord Stream 2 (NS2) is a natural gas pipeline that directly connects Russia to Germany, via the Baltic Sea.
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