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

1 1 (August 24, 2021)

handle is hein.crs/govehhf0001 and id is 1 raw text is: Updated August 24, 2021 Russia's Nord Stream 2 Natural Gas Pipeline to Germany Nord Stream2, a naturalgas pipeline nearing completion, is expected to increasethe volume of Russia's naturalgas export capacity directly to Germany, bypassing Ukraine, Poland, and other transit states (Figure 1). Successive U.S. Administrations and Congresses have opposed Nord Stream 2, reflecting concerns about European dependence on Rus s ian energy and the threat of increased Russian aggression in Ukraine. The German government is a key proponent of the pipeline, which it says willbe a reliable source ofnaturalgas as Germany is ending nuclear energy production and reducing coal use. Despite the Biden Administration's stated opposition to Nord Stream2, the Administration appears to have shifted its focus away fromworking to preventthe pipeline's completion to mitigating the potential negative impacts of an operationalpipeline. 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, is sued on July 21, 2021, which they perceivedas indirectly affirming the pipeline's completion.Althoughthestatementincludeda German pledge to increase energy investments in Ukraine and to counter future Russian attempts to use energy as a weapon, it made no mention ofhalting progress on Nord Stream 2. Critics argue it will be difficult to hold future German governments to its commitments andthat the Administration should pursue additional sanctions to prevent the pipeline frombecoming operational. Background and Current Status Nord Stream2 lies alongside the Nord Stream 1 pipeline, in operation since 2011. The 760-mile-long Nord Stream2 pipeline (consisting oftwo parallellines) is expected to double the total capacity of the Nord Streamsystem, from 55 billion cubic meters (BCM) to 110 BCM per year. The pipeline is owned by the Rus sian state-owned energy company Gazprom. About half the costis reportedly financed by five European companies: Engie (France), OMV (Austria), Shell (Netherlands/UK), Uniper (Germany), and Wintershall (Germany). Pipeline constructionwas initially suspended in December 2019, after the passage of U.S. legislation establishing new sanctions related to the pipeline. Constructionresumed in December 2020. In response, the United States has imposed sanctions on 23 Russian-related entities and vessels. Construction of the pipeline has continued, however, and is expected to be complete by fall2021. Additional steps, including certification by German authorities, are required before the pipeline begins to transport gas. Although the European Union (EU) has articulated an ambitious energy diversification strategy, some European governments havenot reduceddependence 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 Rus sian supply include diminishing European gas supplies, commitments to reduce coaluse, Rus sian investments in European infrastructure, Rus sian export prices, and the perception of many Europeans that Russia remains areliable supplier. Figure 1. Nord Stream Gas Pipeline System Gas pipelines in operation Ongoing projects Source: Gazprom, edited by CRS. Note: Ukraine is south of Belarus, between Poland and Russia. Support and Opposition Supporters of Nord Stream2, including theGerman and Austrian governments, argue 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 ofinfrastructure to ensure that gas can be transported across Europe once it reaches Germany. They stress that Germany supports broader Europeanenergy supply diversification efforts, including construction of new liquefied natural gas (LNG) terminals in northern Germany. Opponents of the pipeline-including, among others, some EU officials, the European Parliament, Poland, the Baltic states, Ukraine, the Biden Administration, and many Members of Congress-argue that it would give Russia greater political and economic leverage over Germany and others that are dependenton Russian gas, leave some countries more vulnerable to supply cutoffs orprice manipulation by Russia, and increase Ukraine's vulnerability to Russian aggression. Impact on Ukraine In recent years, Russia has sought toreduce the amount of naturalgas it transits through Ukraine. Before Nord Stream 1 opened in 2011, about 80% of Rus sia's natural gas exports to Europe transited Ukraine. In 2019, about 45% of these exports transited Ukraine. %nure~sionaf Rei~ &YArdi ½rvu

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