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.
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.
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]
Despite Berlin and Moscow’s rush to make the Nordstream 2 (NS2) pipeline construction through the Baltic Sea a fait accompli, opposition from several EU states has stalled its completion. Meanwhile, Gazprom’s transit contract with Ukraine will expire in January and Moscow has put unacceptable preconditions on negotiating a new one. Once again, Europe must brace itself for a Russian gas-supply crisis. Professor Thomas O’Donnell will discuss European states’ various interests and heightened energy anxieties, the prospects for the NS2 pipeline, and Russia’s strategy.
Speaker: Thomas O’Donnell,
Instructor, Hertie School of Governance, Berlin; Title VIII Short-term Scholar, Kennan Institute — Scholar’s Research-Project Page at Kennan
Wednesday, June 12, 2019
2:00pm-3:00pm – 5th Floor Conference Room
Wilson Center
Ronald Reagan Building and
International Trade Center
One Woodrow Wilson Plaza
1300 Pennsylvania, Ave., NW
Washington, D.C. 20004 Phone: 202.691.4000 kennan@wilsoncenter.org
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 →
Here is my detailed analysis of the decision by Angela Merkel’s government to begin “small-scale” Liquid Natural Gas (LNG) imports to address greenhouse gas emissions and competitiveness issues in Germany’s heavy-road transport and maritime-shipping sectors. Read it below (via Scribid) or go directly to EUCERS. [This peer-reviewed paper appears in the King’s College-London, Newsletter of the European Centre for Energy and Resource Security (EUCERS), Issue 77, July 2018.] – Tom O’D.