U.S. Wants Nord Stream 2 Halted If Putin Were to Invade Ukraine

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  1. The U.S. will push Germany to agree to stop the contested Nord Stream 2 gas pipeline if Russian President Vladimir Putin invades Ukraine, according to documents seen by Bloomberg and people familiar with the plans.

    President Joe Biden’s administration is seeking a commitment from the new German government that it would halt the project under such circumstances, one of the people said, asking not to be identified talking about confidential discussions.

    As Biden holds a high-stakes video call with Putin, the pipeline is one of the measures being discussed by the U.S. and European allies as providing potential leverage with the Russian leader. That’s as he again masses troops near the Ukrainian border and the U.S. and NATO fret about the possibility of an invasion in the early part of next year. Putin has denied his intention is to start a war.

    Other possible options under discussion include sanctions on Russian banks and exports of the country’s commodities. The aim is to agree on a package that is comprehensive, quick to implement and economically painful enough that it serves as a true deterrent.

    Nord Stream 2 is important both for Putin, as a route to sell more gas into Europe, and for Germany, which relies on supplies from Russia. The long-running pipeline project has been a periodic source of tension between the U.S. and Germany, with the administration of Chancellor Angela Merkel unwilling to use it as a political tool with Putin.

    As part of an agreement signed with Biden in July, Merkel’s government committed to taking action if Russia deploys energy as a weapon or acts aggressively toward Ukraine. The deal also provided assurances to Ukraine and its status as a transit country for other pipelines. In exchange, Biden backed off imposing new measures on German entities connected to the project’s construction.

    Action by Berlin against Nord Stream 2 would mean a real threat for the project. A senior European intelligence official said the conditions in the July agreement would be met in the event of an invasion. The geopolitical concerns that underpinned that deal are real now, the person said.

    While the Biden administration can’t stop the project outright, it can impose more sanctions on people and entities involved in it. A National Security Council spokesperson directed queries to the German government and referred to earlier statements related to U.S. opposition to the pipeline. A State Department spokesperson didn’t immediately respond to a request for comment.

    It’s unclear how the new coalition government in Berlin sees things. At a press conference on Tuesday, incoming Chancellor Olaf Scholz called the situation at the Ukraine border “serious” and said his government would watch developments there very carefully.

    His government will continue to make sure Ukraine remains a gas transit country, Scholz told reporters. But he avoided a clear answer to the question on whether his government would stop Nord Stream 2 if Putin invaded Ukraine. Scholz’s Social Democrats, like Merkel, support the pipeline project as a whole.

    Incoming Vice Chancellor Robert Habeck from the Greens, however, made clear that the review process of the project might be affected by developments in Ukraine. Germany’s Greens have in the past demanded an end to the project.

    The newly completed pipeline under the Baltic Sea can’t start without approval from the German regulator and a review by European authorities. The evaluation process in Germany was halted in mid-November after the regulator decided that Russian energy company Gazprom PJSC will need to restructure its Nord Stream 2 operations to comply with European Union laws.

    Critics of the pipeline, which include several EU members, have long argued against the project, claiming it makes Europe too dependent on Russian gas. Germany and Russia say it’s a commercial endeavor.

    Gazprom supplied almost a third of all gas consumed in Europe in 2020 and will likely become an even more important source in the short term as the continent shrinks domestic production.

    The U.S. hopes to finalize an agreement on the reprisals package for Putin this month, the people said.

    Ahead of the Biden-Putin call, two people told Bloomberg there were no signs Russia was de-escalating. One pointed to Belarus summoning Ukraine’s defense attache over an alleged airspace violation as the latest in a string of worrying signs. Ukraine denied the claim that one of its military helicopters flew into Belarusian territory. Still, one of the people said a window of opportunity to dissuade Putin was still open.

    The U.S. has shared intelligence with NATO allies suggesting Russia would be in a position to potentially carry out a rapid, large scale incursion into Ukraine from multiple locations in the early months of 2022. The plans would involve about 100 battalion tactical groups, roughly double the number currently positioned near Ukraine’s borders, according to the intelligence.

    Limiting Russian energy exports could put Europe’s economies at risk at a crucial time for the continent’s recovery. The region is experiencing one of the worst gas supply crises in recent years, which has pushed fuel prices to record highs, raising inflation and concerns about Europe’s ability to get enough gas supplies over the winter. Any moves on Nord Stream 2 have stirred the European market, and traders expect that Russian flows will ease the tightness in the market.

    The EU’s executive arm wants the bloc to more quickly move away from fossil fuels and toward renewable sources as part of its green deal in order to also better deal with volatile energy prices.

  2. Now’s your chance Germany. The western front is clear and the US is on your side this time. We know you’ve been waiting for this.

  3. That’s nonsensical. If Russia invades, gas flow through Ukraine is going to be at risk.

  4. One of the reasons why Biden lifted those NS2 sanctions against bipartisan criticism was that Germany agreed to halt NS2 if it were used as a weapon. Well, if Russia were to invade Ukraine it would partly be because they don’t need to worry about Ukraine cutting Russian gas supply to Germany. Since Russia would most likely be invading in the dead of winter… I doubt Europe will cut the gas supply. Putin is in a very strong position as a result. All of this just because Germany didn’t want to pay some transit fees to Ukraine… Schroder will prob get a big bonus

  5. That is only logical, in the meantime we need to see where to get gas. Russia always was an unreliable partner. This mistake needs fixes.

  6. So… are we also planning on closing down the other pipelines that run through Poland if an invasion happens? Or just NS2?

  7. I’ve supported NS2 for years now but at this point I think it’s time for Germany to finally pull the plug. In terms of realpolitik, which was the entire motivation for this pipeline to begin with, there’s probably no better time to cease construction as the US is friendly to the current German government which means they won’t be appeasing a deeply unpopular political figure like Trump and they’re under pressure from Russia’s increasingly militaristic ways so they have a good excuse too. If they wait much longer it could end up resulting in public humiliation for Germany as they’re forced to back down under threat of US sanctions regardless of how much it factors into a decision to bring a halt to the construction of NS2.

  8. The good news is that this means Russia didn’t invade Ukraine yet after all. The last nine years were all just a big misunderstanding.

  9. And continue buying gas through the other pipelines? Like the rest of Eastern and Central Europe does?

  10. So if there will be a war between Russia and Ukraine, half of people in here would blame Germany – because they prefered to have gas delivered over slightly more secure pipelines?

    Hear yourself talk, people.

    If anything a pipeline directly to Germany would be good for Ukraine because they could buy it from there, in case Russia decided to shut down supply to Ukraine. And Russia would think twice to cut off german supply and offend a good paying customer and large trading partner.

  11. > Critics of the pipeline, which include several EU members, have long
    argued against the project, claiming it makes Europe too dependent on
    Russian gas.

    No, it makes Germany to independent from the other monopolists. If the German populous isn’t at risk of freezing to dead when the Ukrainians try to blackmail them in case of war. They might be less inclined to suffer for an unrelated non-NATO state.

  12. Absolutely idiotic that Germany, and thus the EU, is exposed because they decided to shut down nuclear plants and not investing in proper heating and electrical infrastructure. Just moronic hubris.

  13. US wants to sell it’s overpriced gas to Europe so they’re going to get Ukraine to escalate the war then blame Russia.

  14. If Russia invades Ukraine, we really should think about finding alternative suppliers for gas. This should not only put NS2 into question, but all the other pipelines through eastern europe as well.

    But until that happens, NS2 should go ahead as planned. Because I am not really convinced it is going to happen.

  15. I fail to see the logic, all pipes come from Russia. The difference with NS2 is that Ukraine can no longer use it as a weapon. They closed it several time before.

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