Hamza. Posted February 3, 2022 Share Posted February 3, 2022 Fresh warnings from the US over the Nord Stream 2 gas pipeline have thrust the controversial project back into the spotlight. The US has indicated the new pipeline between Russia and Germany will not go ahead, and officials in Berlin say the project could face sanctions if Russia sends troops into Ukraine. The multi-billion dollar pipeline is increasingly being seen as a key bargaining chip in Western efforts to prevent a possible Russian invasion. So what is the pipeline and why is it still so divisive? What is Nord Stream 2? It's a new 1,200km (745-mile) gas pipeline running from western Russia to north-eastern Germany under the Baltic sea. The €10bn (£8.3bn) project is designed to double the amount of natural gas flowing from Russia straight to Germany. Gas currently flows via the original Nord Stream pipeline, which was completed in 2012. If it comes to fruition, the pipeline will be able to pump 55 billion cubic metres of gas to Germany each year. Its owner is the Russian state-controlled gas firm Gazprom. Work on the pipeline finished last September. But Gazprom is still awaiting approval from European regulators before it can open the taps and start pumping gas. So why is it so controversial? Critics say the pipeline is a tool of Russian foreign policy - and there has been strong opposition from the US, Ukraine and Poland. The US fears the pipeline makes Europe much more dependent on Russian energy, handing significant power over Berlin and the EU to Russian President Vladimir Putin. Ukraine also wants the pipeline stopped. Russia sends much of its gas to Europe through Ukraine. But Nord Stream 1 and 2 bypass the country. That means that with the new pipeline Kyiv could lose out on €1.8bn in "transit" fees it earns on gas passing through its territory. Ukraine says it is being punished for its warm relations with the West. Poland is unhappy about being overlooked as a transit country for Russian gas supplies into Europe. Why is it such a key bargaining chip? The pipeline has been touted as a sanction the West could threaten against Russia to show Mr Putin that any invasion of Ukraine would come at a heavy cost. UK Defence Secretary Ben Wallace has called the pipeline a "piece of leverage" the West can use against Moscow. Mr Wallace said the pipeline was "one of the few chips that can make a difference". Is Russia preparing to invade Ukraine? Kremlin media: Ukraine the aggressor, not Russia UK doubts Russian invasion of Ukraine can be stopped For Russia, the pipeline is important as it pumps gas directly into Europe, cutting the costs of sending its supplies through Ukraine. Those backing sanctions on the pipeline say they would be a blow to Moscow - leaving it with fewer revenues and showing Europe does not have to rely on energy from Russia. So what happens if it doesn't open? That would not be without big costs in Europe. The continent is already grappling with soaring energy prices and lower-than-usual supplies of Russian gas. Germany badly needs the pipeline's gas. It could warm 26 million German homes and ease the nation's transition to renewable energy. Germany's Economy Minister Robert Habeck warned on Wednesday: "If there are to be sanctions, there will be none that won't hit the German economy." But observers say the bigger danger would come from Russia halting gas supplies from existing pipelines through Ukraine. Why are gas prices so high? Will Russia-Ukraine tensions push up UK gas bills? There are other gas options for some countries. Germany can also import from Norway, the Netherlands, Britain and Denmark via pipelines. But Norway, the second largest supplier to Europe, has said it is delivering natural gas to Europe at maximum capacity and cannot replace any missing supplies from Russia. The US is holding talks with gas-producing countries around the world to try and secure back-up supplies for Europe in case Russia shuts off its pipelines. But there are worries about the challenges of shipping natural gas. Link to comment Share on other sites More sharing options...
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