Photo : REUTERS/Hannibal Hanschke/File Photo
02 December 2021, Thursday | NIAS Europe Daily Brief #62
IN FOCUS
By Harini Madhusudan
Nord Stream 2 and Europe’s Energy Supplies
On 30 November, Britain’s Foreign Secretary joined a last-minute push and urged the NATO allies towards blocking the Nord-Stream 2 pipeline, claiming that Moscow would exploit its position as the primary supplier of energy to European countries. The UK, along with Poland, Ukraine, and the Baltic States have been at the forefront questioning the wisdom of the pipeline. Nord Stream 2 is designed to directly deliver Russian natural gas directly to Germany, which is vital for the energy shortages in Europe.
On 28 November, the German Foreign Ministry stated that it was continuing to work closely with the US on the implementation of the Nord Stream 2 pipeline deal. The ministry said that it was working towards a joint declaration for the USD 11 billion pipelines which runs under the Baltic Sea and carries gas from Russia to Germany. The US and some European countries oppose the pipeline because it bypasses Ukraine. Though the Biden administration, in July 2021, waived the sanctions on the Nord Stream 2 pipeline and made a deal with Germany. However, on 22 November, the US imposed additional sanctions targeting Russia-linked Transadria Ltd and its vessel.
Though the project is economy/energy-based, many in Europe and the US have made it a political one. They believe that the pipeline will undermine the European Union and NATO security, while giving Moscow a new weapon in its ongoing struggle with the West, additionally isolating Ukraine. The Nord Stream 1 & 2 have been supported by the former German chancellor, the second of which was completed in September 2021 and is expected to begin operations in early 2022. In November 2021, the project suffered a major setback when the regulators delayed the approval demanding the pipeline be compliant with German Law, which is expected to delay the start of the operations by several months. Additionally, the European Commission is also required to sign off on the pipeline before the transportation begins.
The model of the pipeline by Gazprom is designed to divert away from the traditional supply routes that pass through Ukraine. This deprives Ukraine of billions of dollars as transit costs, which is seen as an existential threat to the Ukrainian national security. The delay of operations, on the other hand, would deprive the European region of their gas supplies which would likely worsen the energy crisis in Europe. The Russian argument says it is “purely a commercial project,” and called the unilateral decision of restrictions as “without reason.”
The new three-party coalition in Germany has indicated their opposition to the pipeline. All three parties in the coalition have various reasons to oppose the approval of Nord Stream 2. With the NATO pressure and the green energy agenda of Europe, the Nord Stream 2 pipeline is likely to be a factor of divisions within the EU member states and fuel the existing geopolitical crisis between EU and Russia, while leaving the immediate energy access undecided.
References:
“Germany says working with the US on Nord Stream 2 deal,” Reuters, 28 November 2021.
Patrick Wintour, “Liz Truss urges NATO allies to block Russia’s Nord Stream 2 pipeline,” The Guardian, 30 November 2021.
Stephanie Monier, “Nord Stream 2 stalls on German approval as Europe looks to winter,” Lombard Odier, 30 November 2021.
David Brennan, “NATO allies want German pivot on Russia’s Nord Stream 2 pipeline,” Newsweek, 02 December 2021.
IN BRIEF
By Joeana Cera Matthews, Padmashree Anandhan and Ashwin Immanuel Dhanabalan
AUSTRIA
Schallenberg resigns following Kurz resignation
On 02 December, former Austrian Chancellor Sebastian Kurz declared his decision to resign from politics. Kurz, who recently donned the role of a father, maintained that his departure was an effort at prioritizing his family. Later in the day, Chancellor Alexander Schallenberg, who was the obvious nomination for party head, stated that he would not be running for the same and would soon resign as head of the government. He stated: “I firmly believe that both positions – head of government and leader of the Austrian party with the most votes – should soon once again be held by the same person… I am therefore making my post as chancellor available as soon as the relevant course has been set within the party.” Kurz had stepped down as chancellor after corruption allegations were directed at him. He included a reference to the same in his resignation statement, saying how the “accusations” hampered his ability to work well. (“Austrian chancellor resigns after Sebastian Kurz withdraws from politics,” Deutsche Welle, 02 December 2021)
REGIONAL
ECJ top lawyer advices ‘dismissal’ of the rule-of-law challenge posed by Hungary and Poland
On 02 December, the European Court of Justice (ECJ) advocate general Manuel Campos Sanchez-Bordona asked the court to ‘dismiss’ the challenge brought forth by Poland and Hungary against the rule-of-law mechanism. Although such advice is non-binding, the court usually takes such opinions into consideration. Responding to this, Poland’s deputy justice minister Sebastian Kaleta took to Twitter: “It was a naivety to trust EU institutions would be capable of self-restraint. This is an assault on the rule of law.” The creation of the EU’s rule-of-law mechanism, in December 2020, was a reply to those deviants who failed to abide by the rules of the bloc. Primarily, the economy of the member state would be affected since funds designated for these members would be withheld. Hungary and Poland have argued the lack of a legal ground for the mechanism’s application. The EU has not used the mechanism to date since they await the ECJ’s review on the matter. (“European Court of Justice likely to dismiss Poland, Hungary 'rule-of-law challenge,” Deutsche Welle, 02 December 2021)
MIGRATION
Western countries impose severe coordinated sanctions against Lukashenko’s regime and close associates
On 02 December, the US, the EU, the UK and Canada together imposed sanctions on people and entities related to Belarusian President Alexander Lukashenko. The statement mentioned that the sanctions were levied due to the “continuous attacks on fundamental freedoms, human rights, acts of repression and disregard of the international norms”. It is believed that the Belarusian regime tricked migrants to enter Belarus promising for easy migration into Europe. At the Council of Ministers in Brussels, the EU diplomats decided to impose sanctions on those who were directly involved in bringing in the migrants. The fifth set of sanctions directed at the regime covers several commanders who were in the border strife and Belarusian state airline Belavia and Syrian airline Cham wings. Meanwhile, the US Treasury Department also imposed restrictions on "dealings in new issuances of Belarusian sovereign debt, limiting the government's ability to borrow money”. It also targeted the associates of Lukashenko’s son, as well as others related to third-country airlines and a potash company. Belarus responded by stating that these sanctions would hurt the civilians and requested for reconsideration of the same. However, they also warned of responding via asymmetrical measures. (“EU, UK, US, Canada issue coordinated sanctions against Belarus regime,” Deutsche Welle, 02 December 2021)
INTERNATIONAL
Blinken warns Russia of ‘serious consequences’ if tensions with Ukraine escalate
On 02 December, the US Secretary of State Antony Blinken met with Russian Foreign Minister Sergey Lavrov. The meeting addressed the issue of the Russian aggression near the Ukrainian borders as Blinken warned the “serious consequences” that an escalation of the same could ensue. The leaders met in the backdrop of the Organization for Security and Co-operation in Europe (OSCE) in Stockholm. While Blinken maintained that “the best way to avert crisis is through diplomacy”, Lavrov explained: “We, as President (Vladimir) Putin has stated, do not want any conflicts.” (“US top diplomat Blinken warns of 'serious consequences' if Russia attacks Ukraine,” Deutsche Welle, 02 December 2021)