Tag Archives: Moratorium

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.

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