Home Capital Global review

How Nord Stream 2 got stuck because of Russia, Ukraine

How Nord Stream 2 got stuck because of Russia, Ukraine
Nord Stream 2 faces obstacles in lieu of of Russia, Ukraine
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

The newly completed Nord Stream 2 pipeline under the Baltic Sea has come tantalisingly close to being able to pump billions of cubic metres of Russian gas to the European Union. The link between Russia and Germany runs parallel to the existing Nord Stream pipeline that’s been fully operational since 2012 and has a ready-made market. But its startup was already delayed by earlier US efforts to block its completion, and now Russia’s recognition of two separatist republics in eastern Ukraine has further stalled the project, putting approval on ice as Europe prepares new sanctions aimed at Russia.

1. What’s suspended it for now?

German Chancellor Olaf Scholz said Russian President Vladimir Putin’s recognition of the breakaway republics in Ukraine had materially changed the situation so that “no certification of the pipeline can happen right now.” Without it, he told reporters, the gas link “cannot go into operation.” Scholz effectively froze the approval process by having the Economy Ministry withdraw its assessment that the project does not pose a threat to security of supply. Economy Minister Robert Habeck, a co-leader of Germany’s Green party, which has been a vocal opponent of the pipe, said that the political conflict between Russia and the Ukraine will be taken into account in reevaluating energy security.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now