Is this even a real proposal? Nowadays, after becoming so unreliable a supplier of gas to Europe, in fact having weaponized Russian gas deliveries, it is difficult for anyone to take this proposal seriously. Erdogan may have many significant problems; however he and Turkey are not so naieve as to do what Germany and Austria forced the European Union to do, i.e., become overdependent on Russian gas, especially given the deep energy crisis Europe is currently going through.
But, also consider this (as I explained towards the end): This proposal of sending Nord Stream gas, originating in Northern Urengoy province, above the Artic Circle, would also require a big, new pipeline laying project, running at least from perhaps near the Ukrainian border south towards the Black Sea and then onto Turkey. This would have a significant cost. And, by the time this could be finished – in perhaps five or more years – the world will have moved on. By that time, new LNG and natural gas production potential in the USA, Qatar, Australia, Algeria, Norway, Israel (sent to Egypt for liquification) and likely many others’, will have been developed and be on the global market. On this time horizon, there would be plenty of diverse sources of gas fully able to replace Russian export capacities.
I also explained the history of the South Stream Pipeline …
My thanks to Al Jazeera’s Katya Bohdan, producer, and the digital team in Doha (English) for this well done “documentary” featuring my point of view on: “What does Russia’s gaas cur mean for Europe?” I think it is self-explanatory (and its short). Watch it below or directly at the AJ link here. Tom OD.
Dear readers: I have so many interviews on the present energy-and-war crisis that I cannot post them all here. Here are two recent ones.
Some comments on the DW interveiw above:
I spoke with DW.de Business show host Daniel Winter about the OPEC decision today, which some decried, and the EU plans to put a price cap on natural gaas – Russian and otherwise. You might find my take on the OPEC decision surprising?
Jun 17, 2022 Today, Gazprom announced a further cut in exports of gas via Nord Stream 1 to Germany and on into Europe. Earlier this week, they had cut 40%, now it is 60% of the 55 billion cubic meters per year (bcm) that normally flows in this pipe.
I explained that the Gazprom excuse – -that it could not re-import some compressor parts it had sent to Siemens to repair in Canada due to sanctions — appears as a convenient, manufactured excuse.
I pointed out that a one-off sanctions waiver from the USA, EU and/or Canada for the reimportation of these very specific parts could likely be easily arranged – and if the gas did not again flow fully, Gazprom’s ruse would be clearly exposed.
However, as I said, this is more accurately understood as simply another step in the weaponization of the over-dependence of the European Union (and esp. of Germany, Austria and Italy) on Russian gas imports, a game which Mr. Putin began in earnest in August of 2021.
Kostaka.Media (Kyiv) independent journalists continue informing the Ukranian people on energy affairs. I was interviewed from afar by YAROSLAV MARKIN, TETIANA HUZENKO. We focused on gas issues – would Putin cut Europe’s gas? What have the Americans been organizing, now with the Europeans? How would this affect Europe, Ukraine and Putin’s income?
Below are links to the article in Kostaka’s three languages (EN, RU, UA). I pasted in the English one below, in case you have access problems. This interview had to be written, not audio/video, due to wartime difficulties. [Also, here’s my previous (in-person Kyiv) interview with Kostaka.Media.]
Biden’s Gas Air Lift and the impact on Kremlin revenue: Thomas W. O’Donnell on the russian gas embargo 28 April 2022 — Author YAROSLAV MARKIN, TETIANA HUZENKO Europe is going to cut the consumption of gas by a ⅔ in 2022, that is obviously will affect the Kremlin’s revenue. However, an embargo is highly possible as well. Both the Kremlin and the EU, in response to Russia’s new war crimes in Ukraine, could stop the gas flows. In such a case, LNG supplies are to help weather the crisis of 2022-2023 via Biden Air Lift. The last mentioned is being set up by the US and EU diplomats and is patterned on the Berlin Air Lift of 1949. Berlin Air Lift was a system of food and coal supply during the times when the USSR had been blocking land routes. This would be the end of Russian gas supplies to Europe forever, an international expert and senior energy and geopolitics analyst at GlobalBarrel.com, Dr Thomas W. O’Donnell believes. He told Kosatka.Media how quickly Europe would be able to abandon Russian gas, what alternative supply routes could be used, and whether Hungary and Austria, obsessed with Russian gas, could prevent this.
The analogue of Putin’s army in the energy sector • How much gas does Europe import from Russia per year? Who are the major consumers?
There are two different market processes whereby Russian gas is purchased by Europe. If we speak about only gas delivered by pipeline, these are: І. Via long-term contracts, agreements which are for natural gas to be delivered for several years, perhaps from five to as much as 20 years.
ІІ. Via the “spot” market. These are short-term contracts for gas to be delivered the following month. It is also possible to buy gas day-by-day, where traders agree to a price for gas delivered the next day. Here, gas traders consult the future’s market, which has set the price for gas delivered the next day, or the next month, or some number of months in the future.
The English version is below here | Mein Op-Ed-Artikel wurde am 6. April 2021 im Tagesspiegel Background in Berlin gedruckt.
Die Ukraine als „Zentralbank“ für europäische Energie
Thomas O’Donnell, Hertie School of Governance
Wie kann die Gasdominanz Russlands strategisch eingehegt werden? Der Wissenschaftler Thomas O’Donnell von der Hertie School of Governance prüft in seinem Standpunkt die Möglichkeit, die Ukraine mit ihren großen Gasspeichern zu einer Art „Zentralbank“ für europäische Energie zu machen und sie als Puffer zu nutzen. Zusammen mit weiteren Alternativen zu den Nord-Stream-Pipelines verbessere das die Versorgungssicherheit stark.
Der Chef des ukrainischen Gastransportsystems, Sergiy Makogon, hat vorgeschlagen, dass Europa die Ukraine als flexiblen und strategischen Energieknotenpunkt akzeptiert und dabei die Vorteile ihrer einzigartigen Gastransport- und -speicherinfrastruktur nutzt.
Was dieses Konzept glaubwürdig macht, ist, dass die Ukraine seit 2014, kurz nachdem die Maidan-Revolution und die russische Aggression begannen, ihren Gassektor erfolgreich in diese Richtung umgestaltet hat. Mit Hilfe der EU rüstete die Ukraine rasch die Exportpipelines in die Slowakei, nach Polen, Ungarn und Rumänien um, um Rückflüsse (Reverse-Flow) zu ermöglichen. Das befreite Kiew schnell von der Notwendigkeit, russisches Gas zu kaufen, und stellte sicher, dass ein solcher „Handel“ in Zukunft nicht dazu genutzt werden kann, Moskau zugeneigte Oligarchen zu fördern.
Op-Ed: Ukraine as “Central Bank” of European energy
Dr. Thomas O’Donnell, Hertie School of Governance | Published in: Tagesspiegel Background, Berlin. 6 April 2021
How can Russia’s gas dominance be strategically contained? Dr. Thomas O’Donnell of the Hertie School of Governance, Berlin, examines the possibility of turning Ukraine with its large gas storage facilities into a kind of “central bank” for European energy and using it as a buffer. Together with other alternatives to the Nord Stream pipelines, this will greatly improve European security of supply.
The CEO of Ukrainian’s gas transmission pipeline system, Mr. Sergiy Makogon, has proposed that Europe embrace Ukraine as a flexible and strategic energy hub, taking advantage of its unique gas-transport and -storage infrastructure.
What makes this concept credible is that Ukraine has been successfully re-shaping its gas sector in this direction since 2014, shortly after its Maidan Revolution and Russia’s aggression began. With EU assistance, Ukraine rapidly retooled export pipelines to Slovakia, Poland, the Czech Republic and Hungary to permit reverse flows. This rapidly freed Kyiv from buying Russian gas and assured this “trade” could not be used in future to cultivate pro-Moscow oligarchs.
[This post is a dey late due to the violent attack on the US Capitol orchestrated by the outgoing-president and his followers. This assault has been defeated and the election is being certified by Congress. Trump will soon leave and Biden will take office in accordance with the Constitution and laws. T. O’D.]
The EuroNews Morning Show asked me [yesterday 6 January,] again about the Nord Stream 2 pipeline. Two key points made in the earlier interviews were:
That the plans of Nord Stream 2 AG (NS2 AG) to restart pipelaying before the holidays in German waters was a propaganda exercise (viz, “a disinformation campaign”) orchestrated by Moscow and Gazprom to create the impression the pipeline can be finished.
Despite this new pipelaying “bravado”, the pipeline was effectively “dead” because of the US sanctions.
These points were an assessment of the impact of the new sanctions law, which was about to be enacted by the US Congress. This is the “Clarifications” of the Protecting Europe’s Energy Security Act, or PEESCA, which was enacted December 2021, despite a veto by President Trump. These PEESCA sanctions have been added to the previous PEESCA (December 2002) sanctions and the Countering America’s Adversaries Through Sanctions Act (CAATSA, initially 2017) sanctions against NS2.
My EuroNews live Morning Show interview today (9 Dec 20) with Rosie Wright:
I explains why the German far-right AfD party, which went to Moscow yesterday to show Lavrov their party’s support for Nord Stream 2, supports the project. The AfD supports it along with all other German parties, from “far-right to far-left, and those in the middle, except the Greens.”
Also, I explain how Europe’s dependence on Russian gas will require decades to escape.
However, what are the strategic objectives of Moscow in building Nord Stream 2? I explain Putin wants to build Nord Steam 2 through the Baltic Sea to Germany as well as to complete the Turk Stream (formerly South Stream) pipeline across the Black Sea and Turkey and on into the Balkans and then into Central Europe, and also west to Italy. The reason for this is so that Gazprom does not have to send Russian gas to Europe via Ukraine and Belarus, countries that are in rebellion against Russian dominance.
My analysis of the US-German crisis over Nord Stream 2 and policy towards Russia, published in Washington by the American Institute for Contemporary German Studies (AICGS), 8 October 2020. Read it at AICGS website\. Or, continue here. Comments & Critiques welcomed (below or via email)
Nord Stream 2: Allies’ Crisis
Two decades of Washington-Berlin collisions over the Nord Stream 1 and now the Nord Stream 2 pipelines have come to crisis.
The U.S. Congress stopped Nord Stream 2 construction in December 2019 by enacting sanctions under the Protecting Europe’s Energy Security Act (PEESA), and is poised to enact a much harsher “Clarification” of PEESA, sanctioning any entity that resumes or aids in resuming construction in the Baltic Sea. German officials insist the project will, nonetheless, be completed, denouncing U.S. sanctions as “extraterritorial” interference in “European sovereignty.”
In reality, the project appears dead. Statements by businesses interests, as opposed to political actors, support this. To resume construction, companies, ports, officials, and insurers would require guarantees against ruin, including being personally sanctioned, which is difficult to imagine the German state providing. And there is no evidence of preparations to do so. Nevertheless, Russia’s Gazprom continues preparations to resume work.
Complicating matters, the U.S. Congress, having mandated sanctions against the pipeline, would have to approve any compromise. On the other side, the German Bundestag roundly “savaged” a motion by the Green Party to abandon Nord Stream 2 in response to Navalny’s poisoning, unprecedentedly uniting the CDU/CSU of Chancellor Merkel and her SPD coalition partners with both the far-left Die Linke and far-right Alternative for Deutschland.
What are US experts’ and officials’ views on the increasingly conflictive energy and geostrategic relations between Russia, Germany, Poland and Ukraine?
Greetings. I’m in Washington as a “Title VIII” fellow of the Kennan Institute in the Woodrow Wilson Center, interviewing people in think tanks and government (legislative and executive) on these topics. I’ll also give a public talk on this at Wilson on 12 June, at 2 PM (more info soon).
I’m interested to hear anything readers think should be asked and of whom. Don’t hesitate to write me at twod(at)umich.edu or my (temp) Wilson email: thomas.odonnell(at) wilsoncenter.org.
A central issue: why is Germany so adamantly for Nordstream 2 despite the negative security consequences for Ukraine and despite the tremendous hit this project is causing to German soft-power not only with Poland, but with most Central and Eastern European (CEE) and Nordic states? (Here’s my own analysis.) How do US experts see this? Continue reading →
The US Senate’s decision to expand sanctions against Russia triggered indignation in Berlin, throwing Germany’s geopolitical ambitions over the Nord Stream 2 project into sharp relief. Read below or get the App. My other articles at Berlin Policy Journal
“Neue Neue Ostpolitik”
Berlin – July 21, 2017 By: Thomas O’Donnell — On June 15, the US Senate approved an act to sharply expand sanctions imposed on Russia in retaliation for its intervention in eastern Ukraine and annexation of Crimea in 2014. The broadly bi-partisan move that enshrined Barack Obama’s earlier executive orders – intended as a response to Moscow’s alleged cyber interference in US elections – was a stunning rebuke to US President Donald Trump’s Russia policy, essentially taking a broad swath of foreign policy out of his hands. Continue reading →