About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 1 (March 10, 2022)

handle is hein.crs/govehhd0001 and id is 1 raw text is: Congressional fles ar h Servio inforn ingf heegislativ debat sico 1914 Updated March 10, 2022 Russia's Nord Stream 2 Natural Gas Pipeline to Germany Halted In connection with Russia's invasion of Ukraine, the German government has suspended certification of the Nord Stream 2 natural gas pipeline. The pipeline-which has been constructed but has not become operational- would increase Russia's natural gas export capacity directly to Germany, bypassing Ukraine, Poland, and other transit states. Successive Congresses and U.S. Administrations have opposed Nord Stream 2, reflecting concerns about European dependence on Russian energy and Russian aggression in Ukraine. Previously, German officials portrayed the pipeline as an important natural gas corridor as Germany is ending nuclear energy production and reducing coal use. On February 22, 2022, German Chancellor Olaf Scholz directed his economics ministry to withdraw a binding opinion issued in October 2021 stating that Nord Stream 2 did not pose a threat to supply security. The opinion was a precondition for the pipeline certification process to begin. Without the opinion, the certification process cannot continue, and without certification, the pipeline cannot become operational. On February 23, the Biden Administration announced economic sanctions on Nord Stream 2 AG, the pipeline's Russian-owned, Swiss-based parent company, and its chief executive officer (CEO), a German national. The Administration also imposed visa bans on the company's corporate officers. News reports in early March 2022 indicated that Nord Stream 2 AG was considering filing for insolvency. Background Nord Stream 2 lies alongside the Nord Stream 1 pipeline, in operation since 2011. Nord Stream 2 (consisting of two lines) would double the total capacity of the Nord Stream system from 55 billion cubic meters (BCM) to 110 BCM per year. The pipeline is owned by the Russian state-owned energy company Gazprom. About half the cost was reportedly financed by five European companies: Engie, OMV, Shell, Uniper, and Wintershall. Pipeline construction was initially suspended in December 2019, after the passage of U.S. legislation establishing new sanctions related to the pipeline, but resumed one year later. Despite subsequent U.S. sanctions on 25 Russian-related entities and vessels, Gazprom announced in September 2021 that it had completed pipeline construction. Additional steps, including certification by German authorities, are required before the pipeline can transport gas. In November 2021, Germany's energy regulator announced it was suspending the certification process pending establishment of a subsidiary to run the pipeline on German territory. At the time, analysts expected certification could be completed in the second half of 2022. Although the European Union (EU) has articulated an ambitious energy diversification strategy, some European governments have not reduced dependence on Russian gas, which accounted for about 40% of EU natural gas imports in 2021. Factors behind reliance on Russian supply include diminishing European gas supplies, commitments to reduce coal use, Russian investments in European infrastructure, and prior perceptions of Russia as a reliable supplier. Russia's invasion of Ukraine has prompted the EU and its member states to redouble energy diversification efforts. In early March 2022, the European Commission (the EU's executive agency) proposed plans to cut EU dependence on Russian gas by two-thirds in 2022 and end EU reliance on Russian energy resources well before 2030. Figure I. Nord Stream Gas Pipeline System Ga pipelines in operaton Ongoing projects Source: Gazprom, edited by CRS. Previous supporters of Nord Stream 2, including the German and Austrian governments, maintained that the pipeline would enhance EU energy security by increasing the capacity of a direct and secure supply route. German officials said they supported the development of infrastructure to ensure that gas can be transported across Europe once it reaches Germany. They stressed that Germany supports broader European energy supply diversification efforts, including construction of new liquefied natural gas terminals in northern Germany. Opponents of the pipeline argued that it would give Russia greater political and economic leverage over Germany and other countries that are dependent on Russian gas, leave some countries more vulnerable to supply cutoffs or price manipulation by Russia, and increase Ukraine's vulnerability to Russian aggression. They pointed, for example, to Russia's reluctance in late 2021 to increase gas flows to Europe amid renewed demand and rising prices.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most