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

1 1 (December 9, 2021)

handle is hein.crs/govehhe0001 and id is 1 raw text is: Congressional Research Serx& Infm ing Ih legislative deate sino 1914 Updated December 9, 2021 Russia's Nord Stream 2 Natural Gas Pipeline to Germany Russia's Nord Stream 2 natural gas pipeline would increase Russia's natural gas export capacity directly to Germany, bypassing Ukraine, Poland, and other transit states. Pipeline construction reportedly is complete, but the pipeline must receive certification from German regulators before it becomes operational. Successive Congresses and U.S. Administrations have opposed Nord Stream 2, reflecting concerns about European dependence on Russian energy and Russian aggression in Ukraine. Germany has been a key proponent of the pipeline, which German officials view as an important natural gas corridor as Germany is ending nuclear energy production and reducing coal use. Despite the Biden Administration's stated opposition to Nord Stream 2, the Administration appears to have shifted its focus towards mitigating the potential negative impacts of an operational pipeline. Some critics of this approach, including some Members of Congress and the Ukrainian and Polish governments, sharply criticized a U.S.-German joint statement on energy security, issued on July 21, 2021, which they perceived as indirectly affirming the pipeline's completion. Although the statement included a German pledge to counter Russian attempts to use energy as a weapon, it made no mention of halting progress on Nord Stream 2. Critics argue it could be difficult to hold Germany to its commitments and that the Administration should pursue additional sanctions to prevent the pipeline from becoming operational. Background and Current Status Nord Stream 2 lies alongside the Nord Stream 1 pipeline, in operation since 2011. Nord Stream 2 (consisting of 2 lines) is expected to 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 is 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. Barring additional delays, analysts expect certification could be completed between March and June 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 48% of EU natural gas imports in 2020. Russian gas exports to the EU were up 18% year- on-year in the first quarter of 2021. Factors behind reliance on Russian supply include diminishing European gas supplies, commitments to reduce coal use, Russian investments in European infrastructure, and the perception of many Europeans that Russia remains a reliable supplier. Figure I. Nord Stream Gas Pipeline System Cas pipelines in operation Ongoing projects Source: Gazprom, edited by CRS. Supporters of Nord Stream 2, including the German and Austrian governments, have maintained that the pipeline would enhance EU energy security by increasing the capacity of a direct and secure supply route. German officials say they support the development of infrastructure to ensure that gas can be transported across Europe once it reaches Germany. They stress that Germany supports broader European energy supply diversification efforts, including construction of new liquefied natural gas (LNG) terminals in northern Germany. Opponents of the pipeline argue 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 point, for example, to Russia's reluctance in late 2021 to increase gas flows to Europe amidst renewed demand and rising prices. Impact on U kraine In recent years, Russia has sought to reduce the amount of natural gas it transits through Ukraine. Before Nord Stream 1 opened in 2011, about 80% of Russia's natural gas exports to Europe transited Ukraine. In 2019, about 45% of these exports transited Ukraine. In December 2019, after the United States established new sanctions related to Nord Stream 2, Gazprom and the Ukrainian state-owned energy company Naftogaz renewed

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