On Tuesday, German Chancellor Olaf Scholz announced the cancellation of his critical Nord Stream 2 pipeline project with Russia. Germany’s decision comes at a time when Russia has begun sending troops to two Ukrainian cities: Donetsk and Luhansk. The importance of the Nord Stream 2 pipeline for Europe and Russia can be gauged by the fact that Russia was about to double its oil and gas supply to Germany via this project, which would improve the Putin government’s economic situation.
Germany has called off the project, citing its strong opposition to Russia’s actions in Ukraine. Chancellor Scholz stated that Russia must return to the negotiating table, and that the entire world must stop making unilateral decisions.
Find out more about the Nord Stream Pipeline Project.
- Nord Stream is a pipeline with a length of 1200 kilometres. It runs through the Baltic Sea from western Russia to north-east Germany. Through this pipeline project, Germany hopes to double its natural gas supply from Russia.
- Construction of this pipeline, which cost Rs 83 thousand crore, was completed in September 2021. However, some crucial approvals are still pending, which is why the pipeline has yet to be inaugurated.
- This pipeline will deliver 55 billion cubic metres of gas to Germany every year, ensuring that gas and petrol supply to Germany’s 26 million homes is uninterrupted even during the winter. Gazprom, a Russian state-owned company, owns the project. The Nord Stream 1 pipeline currently transports Russian gas to Germany. It has the capacity to produce 55 billion cubic metres of gas per year. This supply will be doubled thanks to the new pipeline.
What is the significance of this project for Russia?
- If Russia begins to supply gas to Germany via this pipeline, it will be seen as a significant diplomatic move by Putin. In fact, Russia currently provides over 40% of Europe’s total energy requirements (oil and gas). In such a scenario, his pipeline will render Germany, Europe’s richest country, completely reliant on itself. Regardless, Germany will be forced to deal with Russia due to the threat of sanctions.
- The United States, Ukraine, and Poland have been vocal in their opposition to Russia’s pipeline project. The majority of Russia’s natural gas is currently delivered through Ukraine. However, neither Nord Stream 1 nor Nord Stream 2 pass through Ukraine. As a result, Russia would not be obligated to pay any money to Ukraine. This project currently costs Ukraine $2 billion in transit fees and has no plans to contain Russia.
What is the extent of Russia’s suffering?
If this project is prohibited in any way, it is likely to have a negative impact on Russia’s earnings. He will have to supply oil and gas by sea or road to save his economy, which will cost him a lot of money. Ukraine will also gain a lot from this.
How much harm is likely to be done to Europe?
If the Nord Stream project is halted, it risks exacerbating the gas crisis in Germany and other European countries, as Russia seeks to bring European countries to their knees by shutting down the rest of Europe’s oil and gas supplies. can give it a shot The majority of Europe’s countries currently rely on Russia for natural gas and oil imports.
What role can America play in assisting Europe?
Following the Nord Stream 2 ban, Russia’s decision to cut off gas and oil supplies to Europe could be dangerous. To avoid this, the United States has recently approached Qatar, a country with vast gas and oil reserves in the Arab world. With Qatar’s assistance, the US can restore Russia’s disrupted supplies to Europe while also preventing Russia from attacking Ukraine.