Friday, March 29, 2024 | Ramadan 18, 1445 H
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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

US-German spat over Russian gas pipeline project

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Issues over energy in the Western world are exacerbated over its availability in some countries and scarcity in others, sometimes leading to conflicts between Western countries eager for access to energy, especially if this does not correspond to Washington’s worldview.


Recently, a row erupted between the EU, headed by Germany, and the US on the issue of energy over Russian gas. Despite US warnings to the German government, the Russian gas pipeline “Nord Stream 2” has now reached Germany. With the EU, along with Germany, continuing efforts to access Russian gas, the US Senate recently passed a law that includes sanctions on this pipeline.


The EU and Berlin have condemned the sanctions as representative of American interference in European energy policy, while the US Congress believes that the Russian gas pipeline will enhance Moscow’s influence in Europe. US pressure in this regard is aimed at disrupting work on this project. Data indicates that 80 per cent of the project work was completed months ago, with operations originally slated to commence at the beginning of this year.


The pipeline with double the volumes of Russian gas needed by Germany and the other European countries. These countries are not convinced of the threats and sanctions that the US seeks to impose on companies and individuals, and believe that this constitutes US interference in their policies and the extent of their need for energy for the economic, institutional and personal purposes of individuals.


Investments in this vital project, worth $10 billion, are divided in half between the Russian Gazprom group and five European companies, while a number of German companies are participating in its implementation by constructing a 1,200 km route between the gas source and its last station across the Baltic Sea.


The US believes that achieving this project will make the EU depend on Russia for energy security, and that it represents a danger to European companies, resulting in the loss of reputation and the sanctions that will be linked to it.


There are several joint stock companies in this project besides Russia’s Gazprom to implement the “Nord Stream 2” gas pipeline.


The Russian company signed financing agreements with German companies Wintershall and Uniper, Dutch-British Shell company, Engie of France and the OMV Group from Austria. US accusations against Germany continue as a form of pressure on this country. Not long ago, Trump has accused Germany of being “captive” to Moscow because of its dependence on Russian energy, and urges it to stop working on the pipeline. Meanwhile, Germany believes that the US cannot apply its laws on others outside its borders.


The issue has started to gain momentum in European countries towards Moscow’s intentions to export Russian gas. Upcoming news indicates that the Austrian oil and gas group OMV recently announced that approximately 25 per cent of the Nord Stream 2 gas pipeline is ready for operation.


Such huge and sensitive projects always trigger a permanent struggle for the commercial interests of big countries, but the variable in this matter is the presence of Russia on the one hand, and Germany on the other hand, towards which no laws can be passed or countermeasures taken, which will only escalate political and economic conflicts that harm the world and the global economy during the current economic distress. Commercial interests are always looking for the proper exits for people and companies to continue their daily businesses and dealings, and this is what the “Nord Stream 2” gas line is built on.


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