Nord Stream 2: Russia reacts calmly to the pipeline stop

After the temporary stop of the Nord Stream 2 Baltic Sea pipeline, Russia is demonstrating composure, but also hinting at rising gas prices. Many Allies paid tribute to the German decision.

The Russian government has reacted calmly to the halt to the Nord Stream 2 pipeline project. “Moscow is not afraid of anything,” said Deputy Foreign Minister Andrei Rudenko, according to the Interfax news agency.

Meanwhile, Vice Chairman of Russia’s National Security Council, Dmitry Medvedev, has fueled fears of high energy prices in Europe. “Welcome to a new world where Europeans will soon be paying 2,000 euros per cubic meter of gas,” the former Russian president tweeted. In an entry in English, however, he spoke of 2,000 euros per 1,000 cubic meters of gas.

US government welcomes stop

Joy, however, in Washington – the US government welcomed the temporary halt to the approval process. US President Joe Biden has made it clear that the pipeline should not go into operation in the event of a Russian attack on Ukraine, spokeswoman Jen Psaki said on Twitter. “We coordinated closely with Germany during the night and welcome the announcement.”

Ukrainian Foreign Minister thanks Scholz

Ukrainian Foreign Minister Dmytro Kuleba praised Chancellor Olaf Scholz’s decision on Nord Stream 2. “This is morally, politically and practically the right step under the current circumstances,” Kuleba wrote on Twitter. “True leadership means tough decisions in difficult times. Germany’s move proves just that.”

Lithuania also welcomed the temporary halt to the approval process. The German government’s decision was “a timely and strong reaction to Russia’s military escalation in Ukraine,” tweeted Foreign Minister Gabrielius Landsbergis. “Every step that Putin takes in Ukraine must have a price.” The Lithuanian head of state, Gitanas Nauseda, also welcomed the provisional end to the gas pipeline.

Federal government stops pipeline

Scholz justified the decision with Putin’s recent steps. In view of the new developments, the situation had to be reassessed, said Scholz. That is why he asked the Federal Ministry of Economics to take the necessary administrative steps so that the gas pipeline cannot be certified for the time being. The approval process is now being rolled out again – and that “will certainly drag on,” said Scholz. “And without this certification, Nord Stream 2 cannot go into operation.”

Scholz accused Putin of seriously violating international law and the Minsk Agreement. Putin is breaking with the United Nations Charter and “with all international agreements that the country has entered into over the past 50 years.” The integrity and sovereignty of each country and the immovability of borders must be respected, emphasized Scholz.

Scholz announces coordinated sanctions

“Now it is up to the international community to react to these unilateral, incomprehensible and unjustified actions by the Russian President,” said Scholz. “Closely aligned, well coordinated and targeted, so that we send a clear signal to Moscow that such actions do not go unnoticed.” Scholz emphasized that there were “further sanctions that we can take if further measures are taken.”

Gas industry: LNG can hardly close the gap

The gas industry in Germany, on the other hand, was not pleased about the end of the pipeline. In the past 50 years, Russia has always been a reliable energy supplier, said Timm Kehler, Managing Director of the “Zukunft Gas” association. The pipeline will help close the growing import gap in Europe. This gap can only be partially filled with LNG liquefied gas terminals and only with higher costs.

The operating company initially did not want to comment on the developments. Nord Stream 2 AG, based in Zug, Switzerland, and the German subsidiary Gas for Europe, based in Schwerin, agreed that they first wanted to wait for relevant information from the authorities.

So far no gas has flowed

Although the 1,230 kilometer double line from Russia through the Baltic Sea to Germany has been completed, no natural gas has yet flowed through the pipeline. The certification process was recently on hold. The Federal Network Agency suspended the procedure in November and demanded that the operating company be organized under German law. Nord Stream 2 AG intends to meet the requirement by founding a German subsidiary.