Germany’s energy regulator lifted approval for Russia’s Nord Stream 2 pipe after Boris Johnson stated to the EU that Ukraine must be free or buy gas from Moscow.
Due to US sanctions, construction of the pipeline that will bring Russian gas from Russia across the Baltic to Germany was delayed. It is being strongly opposed by European countries, who feel it is intended to keep Ukraine free of shipping fees.
Bundesnetzagentur (German regulator) announced Tuesday that it has suspended certification because Nord Stream 2, a Swiss-based consortium, needed to create a German company to obtain an operating license.
Skyrocketing gas costs rose 9 percent on regulator’s action amid worries that Europe could face a serious shortage of fuel this winter.
This comes at a time when Putin is facing fury over two European crises: The ‘weaponizing’ of migrants by Alexander Lukashenko (Kremlin-backed Belarusian dictator), and the buildup of Russian troops in Ukraine’s east.
Last night, Johnson gave an address in which he warned EU allies about a “choice” between Russian gas imports and Ukraine-supporting actions.
Bundesnetzagentur, the German regulator said Tuesday that the certification process had been suspended because Nord Stream 2’s Swiss-based partners needed to establish a German legal company in order to get an operating licence. (pictured: Chancellor Angela Merkel speaks Berlin, November 5)
Also, the PM was accused Lukashenko accused of an “abhorrent” attempt to create a crisis among migrants in order to weaken European unity.
Speaking at the Lord Mayor’s Banquet in the City of London, the PM said: ‘We hope that our friends may recognise that a choice is shortly coming between mainlining ever more Russian hydrocarbons in giant new pipelines and sticking up for Ukraine and championing the cause of peace and stability.’
At the Lord Mayor’s banquet in London, the PM stated: “We hope our friends will recognize that soon there is a choice between supporting ever more Russian oil and gas in massive new pipelines and standing for Ukraine and championing stability and peace.”
Germany like many other European countries, depends on Russia to obtain its natural gas. Russia accounts for approximately 40% of Berlin’s total imports. Compare that to the UK’s 0.5 percent, who imports most its gas from Norway.
Moscow already has used a route through the Baltic Sea to transport Nord Stream 1 – the precursor to Nord Stream 2 – which has a capacity equivalent to about half of Germany’s annual gas consumption.
Nord Stream 2 will increase that number and make Germany a major hub of European gas volume for further distribution.
German regulator Bundesnetzagentur said that it would only consider the Nord Stream 2 application after a transfer of major assets and budgets for staffing to a German subsidiary.
It stated that Nord Stream 2 certification will not be granted unless the operator has been organized in a manner compliant with German law.
The regulator stated that once these requirements were satisfied, it would continue to evaluate the submission for the remainder of the period. This runs from January into early February.
Nord Stream 2 claimed it had been notified. In a statement, it stated that they were not allowed to discuss the specifics of the process or its potential duration.
However, the Kremlin could not be reached immediately for comment.
According to the regulator, the Swiss company decided to not become a German corporation but instead had established a German subsidiary to handle the section of the pipeline that was located on German territory.
Vladimir Putin (pictured in Moscow on Monday) faces fury for two crises on Europe’s doorstep: the ‘weaponising’ of migrants on the Polish border by the Kremlin-backed Belarusian tyrant Alexander Lukashenko, and a buildup of Russian troops on Ukraine’s eastern front
A map showing the origin and destination points for Nord Stream 2 and Nord Stream Pipe (solid lines) connecting Russia and Germany. Putin hoped Nord Stream 2 could be complete two years before, allowing Russia bypass Ukraine in its south. Russia carries approximately 50% of the gas it imports from Russia via Poland.
In the wake of increased concerns about Russia’s supply and uncertainties regarding their arrival, wholesale gas prices in Britain and Europe have risen.
European prices rose by 9% on Tuesday. The Dutch front-month contract was briefly traded at 89.00 euro/MWh.
Konstantin Kosachyov was the deputy chairman of the Russian parliament’s upper chamber. He stated that “any delays in the certification of pipelines, especially on the eve winter is not in Europe’s interests, that’s with no doubt.”
Reuters was told by Naftogaz, the head of Ukraine’s energy company Naftogaz that he appreciated the German energy regulator’s decision.
In a message, Yuriy Viktorenko stated that “Good” was his opinion. This is an important point that suggests the German regulator agrees with our view that certification should not be limited to the German pipeline. It should cover the whole pipeline, from Russia’s territory to Germany.
Ukraine is against the Russian-led project. If Russia supplies gas to Ukraine, Kiev could lose its revenues. Moscow is accused of using energy as an instrument to attack Europe’s security.
Moscow denies this, stating that Nord Stream 2 was a purely commercial endeavor and is compliant with European energy regulations.
Moscow and Kiev are now experiencing wider tensions as a result of the spat about the pipeline.
Ukraine successfully submitted a request to participate in the process of certification for the pipeline.
According to the German regulator, the notice was sent by the European Commission and Berlin’s economy ministry about Nord Stream 2.
Two months have passed since the German regulator decided to evaluate the request for its part.