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24Feb22

German Economy Ministry sees no prospects for launching Nord Stream 2 in mid-term

Vice Chancellor of Germany, Federal Minister for Economic Affairs and Climate Action Robert Habeck said that he does not see any prospects for launching the Nord Stream 2 gas pipeline.

"I do not believe that Nord Stream 2 can be launched in the medium and short term," he said on Thursday in an interview with ZDF TV channel. "But, of course, political efforts should be aimed at de-escalating the situation," he added. At the same time, he did not rule out that "the short term, the prices for gas and oil on the markets will rise" in the light of the situation around Ukraine.

German Chancellor Olaf Scholz stated on Tuesday, the German government stops the certification process of the Nord Stream 2 gas pipeline project after Russia recognized the Donetsk and Lugansk People's Republics.

"The situation today is radically different, and therefore, in the light of the recent developments, we must reevaluate it with regard to Nord Stream 2. Today I asked the Ministry of Economic Affairs to withdraw a report with an energy security analysis from the Federal Network Agency," Scholz said. "This is a technical but necessary administrative and legal step, without it the pipeline's certification cannot happen," he added. "Without this certification, Nord Stream 2 cannot be launched," Scholz said.

Nord Stream 2 AG needed to be registered as an independent transport operator in order to launch the gas pipeline. On November 16, 2021, the German Federal Network Agency suspended certification due to organizational and legal issues.

On December 29, 2021, Russian President Vladimir Putin said that Russia and its partners had completed Nord Stream 2 and stressed that as soon as partners in Europe decide to start work, large additional volumes of Russian gas will immediately begin to flow there. Putin expressed confidence that the launch of Nord Stream 2 would lead to lower gas prices in Europe.

On February 21, Russian President Vladimir Putin signed decrees at the ceremony in the Kremlin on recognizing the Donetsk and Lugansk People's Republics. Putin met with DPR and LPR leaders, Denis Pushilin and Leonid Pasechnik, and signed with them the treaties on friendship, cooperation and mutual aid between Russia and both republics.

[Source: Tass, Berlin, 24Feb22]
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