Tag Archives: Germany

My Op-Ed | Die Ukraine als „Zentralbank“ für europäische Energie | Ukraine as “Central Bank” for European Energy

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.

Lesen Sie weiter auf der Tagesspiegel-Backgrond Seite (der erste Zugang pro Monat ist kostenlos; ansonsten gibt es eine Paywall.))

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.

Continue reading

Could Nord Stream 2 be axed? My guest appearance on Roundtable -TRT TV, London

This 10 February half-hour roundtable on TRT Television, London looked at the possibility of Nord Stream 2 being stopped by US sanctions. My thanks to host David Foster for the invite.

Today is 20 February, and I should add that since this was recorded, the Biden-Harris-Blinken administration has surprised Congress by sanctioning significantly fewer ships than it expected to be sanctioned for assisting Gazprom to lay pipe in Danish and German waters.

This White House attempt to generate goodwill with Berlin and with Merkel’s ruling coalition is generating bipartisan objections in Congress. Upcoming posts will analyze this development . Tom O’D. Below is the text from TRT network’s promotion of the show. and guests’ names and affiliations.

Continue reading

I tell DW TV: Nord Stream 2 is geopolitical. Berlin & Moscow aim to reroute Russia-to-EU gas around “insecure” Ukraine.

My DW Business live, with host Chris Kober, Feb 12,

In this live interview with Deutsche Welle (DW.de) on 12 February, I told host Christoph Kober, that this pipeline is clearly “geopolitical”.

Without Nord Stream 2, Putin can’t significantly escalate his war inside Ukraine; he’d risk his lucrative gas-export business with EU. That’s because, without Nord Stream 2, most of the gas Russia exports to EU countries currently has to arrive via pipelines transiting Ukraine that belong to its finance ministry (the remainder Russia pipes to EU states arrives via Belarus-Poland).

I pointed out that, by invading Ukraine in 2014, Putin created his own worries about his lucrative gas business with the EU. Unfortunately for Ukraine, Germany’s government also frets about this gas, fully 40% of all EU imports, having to pass through Ukraine. And so, Berlin made a “realpolitik” decision in 2015, to assist Russia’s Gazprom to build a huge new a detour pipeline around Ukraine. (I analyzed this policy, in 2017, as a “Neue Neue Ost Politik” and here – i.e., the New New Eastern Politics, a third historical iteration of German elites’ reorientations towards Moscow.)

Continue reading

The FT quotes my critique on: “German green foundation joins efforts to complete Nord Stream 2”

Baltic Sea Port of Mukran, Mecklenburg-West Pomerania.. Logistic center for building Nord Stream 2 pipeline. – By Klugschnacker – Own work, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=15320681

“This is either a conscious Russian disinformation scheme to collect supplies from naive firms, or it’s a really irresponsible move by the foundation,” said Thomas O’Donnell, energy and geopolitics analyst at Hertie School of Governance. (“German green foundation joins efforts to complete Nord Stream 2,” Financial Times, 21 Jan 2020, see here, or PDF here.)

The FT’s Erika Solomon interviewed me about the fake “climate-protection” foundation established by the legislature of the German state of Mecklenburg-West Pomerania (German initials MV).  State officials stated intent is to help Gazprom, the Russian state gas monopoly, overcome US sanctions to finish building the Nord Stream 2 pipeline. Their new foundation is financed with €20 million from Gazprom (sole owner of Nord Stream 2 AG), and €200,000 from the state government.

The strategy is for the foundation to purchase “rare and hard to find” equipment Nord Stream 2 AG will need to finish the pipeline, but which firms cannot sell directly to it because of US sanctions against the project. MV politicians have called their foundation a “clever mechanism” to protect firms from sanctions.  According to the state’s energy minister, Mr. Christian Pegel (SPD), the foundation will be a “type of hardware-store shelf” (“Baumarktregal-Variante“) that then supplies the Gazprom operation. The strategy here is that with the “climate-protection” foundation acting as the middleman, German firms will both not deal directly with Gazprom’s sanctioned Nord Stream 2 project, and the foundation’s purchases will be completed “before the deadline” when sanctions are applied.  

However, there are no such loopholes to be exploited.

Continue reading

My interviews: Tagesspiegel & Frankfurter Allgemeine (FAZ). Nord Stream 2 won’t avoid US sanctions using a phony “environmental foundation.”

These two interviews critique the new “environmental foundation” founded by a local German state, and paid for 99% by Russia’s Gazrpom, as a self-described “clever loophole” to circumvent US sanctions. The publicly admitted scheme is to have the foundation purchase materials and equipment from the specialty companies able to supply them, and have the foundation later supply these materials directly to Gazprom, enabling Gazprom to finish building the pipeline beneath the Baltic Sea. The foundation” is telling firms this will protect them from being sanctioned for selling directly to Gazprom. However, the US sanctions specifically target “circumvention” of sanctions, and I explain that German firms are ill-advised or naïve to cooperate, risking ruinous sanctions.

  1. Tagesspiegel BackgroundNur Naive verkaufen an die Nord-Stream-2-Stiftung” by Jakob Schlandt, 8 January 2020. [“Only Naive (businesses) will sell to the Nord Stream 2 Foundation” Free registration required)
  2. Frankfurter Allegemine Zeitung (FAZ). “Umstrittene Gas Pipeline: Wird Nord Stream 2 am Freitag weitergebaut? By Katharina Wagner and Niklas Záboji, 13 January.2021.
    • Or, English via Google Translate:

CONTROVERSIAL GAS PIPELINE:Will Nord Stream 2 continue to be built on Friday?

The permit from Denmark has been received and new pipes for Nord Stream 2 could soon be laid. However, it is more questionable than ever whether the American sanctions threats can be circumvented.

The completion of Nord Stream 2 remains uncertain. 94 percent of the Baltic Sea gas pipeline has been laid, but the last few meters are still stuck. After the departure of the Dutch-Swiss laying vessels in December 2019, progress was only brief when 2.6 kilometers were erected a few weeks ago . It was not a breakthrough: the pipeline consists of two parallel strands with a total length of around 2,460 kilometers. 30 kilometers are still missing in German, 120 kilometers in Danish waters.

Theoretically, things could continue this week on Friday for the construction consortium Nord Stream 2 AG, a subsidiary of the Russian state group Gazprom. From January 15th it has a permit from the Danish Maritime Administration, and the Russian ship Fortuna is authorized for the work. But according to reports, only preliminary work is planned.

Use of Russian “letter box companies”?

Continue reading

My EuroNews #3: US Sanctions killing Nord Stream 2. Yet Berlin persists trying, with Moscow.

My 3rd EuroNews Nord Stream 2 sanctions interview, 6 January 2021 (After 30-seconds intro)

[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:

  1. 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.
  2. 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.

Continue reading

My EuroNews live interview: Contrary to Moscow’s disinformation & bravado, Nord Stream 2 pipeline is dead.

Host Rosie Wright, of EuroNews Morning Show interviewed me today. I explain how Nord Stream 2 AG’s plan to lay 2.6 kilometers of pipe in shallow German waters actually shows that US sanctions have effectively killed this German-Russian mega natural gas project designed to help both countries avoid shipping/receiving gas that transits Ukraine (mostly), Belarus and Poland.

The pipeline is not bringing “new” gas to Europe, but is designed to end Gazprom’s (the Russian-state gas export monopoly) having to ship its gas exported to Europe across regions which Putin’s regime wants to subvert and pressure (including by military means) back into the Russian orbit. Ukraine and Belarus.

Berlin for its part, does not want to risk the EU’s gas supply by standing up to Moscow’s subversion against Ukraine and Belarus. The USA (i.e., Congress, on a bipartisan basis, and not Trump) has imposed harsh sanctions that are succeeding in stopping completion of the project. The Biden administration will not alter this reality; Biden has opposed this project and always championed the cause of Ukraine reform and independence from Russian dominance, in favor of moving towards the EU.

Note: EuroNews is the most watched news in Europe, reaching 135 million viewers/month. — Comments and critiques most welcomed, either below, or privately to twod-at-umich.edu. — Best, Tom O’D.

Nord Stream 2: Berlin-Washington Mutual Intransigence Shows Transatlantic Divide on Russia | My AICGS Analysis

Credit: Gerd Fahrenhorst via Wikimedia Commons

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.[1] 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.[2]

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.[3]

Continue reading

EE UU v. Alemania: Sanciones y el oleoducto ruso Nord Stream 2 | Fui invitado en “El Fundo” de DW TV

capture.-dw-ns2-15aug20aAquí abajo se puedan ver la grabación de la tortulia del 15 de agosto entre dos expertos y yo en el programa “El Fondo” de la red alemana de Deutschewelle (DE.de TV) sobre “la lucha entre aliados” de los EE. UU. y Alemania en la que Washington ha amenazado con fuertes sanciones contra su aliado de la OTAN, Berlín, por su participación en el proyecto del gasoducto ¨Nord Stream 2¨ con Rusia.  Gracias a DW y su moderadora venezolana Silvia Cabrera.

El video: https://www.dw.com/embed/640/av-54570546 |  Descargar MP4 |  Enlace permanente https://p.dw.com/p/3gyI6

Tenga en cuenta que estas no son sanciones del presidente Trump, sino sanciones impuestas por el Congreso en contra de los deseos de Trump y con el amplio apoyo de ambos partidos. Hay mucha ira en el Congreso contra Rusia por sus malas actividades en Europa en materia de suministro de gas natural al continente por parte de Moscú de forma geoestratégica, pero también por su invasión de Ucrania en 2014, y sus extensas actividades contra las democracias del Oeste.

Para Estados Unidos, este proyecto es una peligrosa colaboración de Alemania con Rusia contra los intereses y la independencia energética de la UE y especialmente de Ucrania, un país con partes de su territorio ocupadas por Rusia desde 2014.

De la propaganda del programa El Fondo de DW.de:

“¡Extorsión!” “¡Guerra comercial!” que traería gas de Rusia a Alemania. ¿Se dañará la relación entre Alemania y Estados Unidos? ¿Definirá Estados Unidos la política energética alemana?

I’m quoted by the FT | “Germany warns new US sanctions endanger Nord Stream 2 pipeline. (As) serious interference in European sovereignty”

BD74709B-4105-41E6-AB80-97377F9D6ADE_w1200_r1

Chancellor Merkel, x-Chancellor Schroeder, Gazprom and Russian officials et al open valve for earlier Nord Stream 1 pipeline, 11 Nov. 2011. (Radio Free Europe)

Here is the link to the Financial Times article of 2 July 2020. (pay wall likely). However, a plain-text version is also below, at the end of this post (for which I beg the FT’s indulgence).

Comment on deteriorating US-German relations over the Nord Stream 2 project

As my brief FT quote indicates, the new PEESA Clarification Act sanctions now before Congress are intended to be so severe as to convince German officials to abandon any further attempts to complete the pipeline with Russia, killing it permanently.

This is essentially an ultimatum, which, as such, will of course be taken badly by the German side. However, German leaders’ and experts’ widely held perceptions that these sanctions are motivated primarily from the mercantilist and transactional approach to US-German relations touted by Trump — such as demands to purchase US LNG — are sorely missing the message emanating from Congress, and not least because US opposition to these projects long predates its shale gas revolution and emergence as an LNG-exporting country.

These sanctions are not flowing from Trump’s complaints against Germany.  In fact, this will be the third time Congress, on a bipartisan basis, has imposed sanctions on Russian interests contrary to Trump’s wishes.

The first instance was the codification into law of President Obama’s executive sanctions on Russia, which Obama had imposed after the Russian invasion of Ukraine in 2014.  These were made into a law in June 2017 which passed with so many votes that Trump could not veto the bill.  This was done precisely because Trump was not trusted to keep in place Obama’s sanctions, considering Trump’s demonstrated affinity for Putin.

These 2017 measures also gave Trump presidential authority to sanction Nord Stream 2; however he refused to do so.  Therefore, Congress imposed mandatory sanctions on Nord Stream 2 in December 2019, known as the PEESA act, as part of the National Defense Authorization Act (NDAA) of 2019. These were the sanctions which had the effect of immediately halting construction of the pipeline.

However, in response, both the Russian and German governments have repeatedly made clear their resolve to complete construction regardless of these 2019 sanctions.  And, once again, since Trump refuses to take further action to stop the pipeline’s construction, Congress is expect to soon enact the very severe PEESA Clarifications Act presently under consideration.

In short, US congressional sanctioning of Nord Stream 2 construction cannot be seen as simply a product of Trump’s presidency, of his nationalist-mercantalist bombast against Chancellor Merkel et al. Although various members have a range of motivations, overall these sanctions reflect a long-evolving bipartisan resolve within Congress that this pipeline project, contrary to the objections of  the German government, is harmful to the energy security of Europe. Russia’s unrelenting cyber, military, assassination, election-interference and propaganda outrages only increases the sense of urgency in Congress.

It should be noted that this is a position supported by many other European allies, who also disagree with Berlin on this matter, and have actively fought to block or, with some successes, hinder the project via legal and political channels within the European Union.

Continue reading