The Nord Stream 2 is a 1200 km pipeline that is spread across Russia and Germany in an attempt to carry almost 55 billion cubic metres of gas per year. It will run from Ust-Luga in Russia to Greifswald in Germany through the Baltic Sea. The pipeline is under construction currently and will run along Nord Stream 1.
The United States was not in favour of the pipeline due to the direct channel that will be formed between Germany and Russia. However in a recent development, US and Germany signed an agreement that ensures that in case there is any aggression on Ukraine by using the pipeline from the Russian side, there will be a strong action taken by Germany in terms of economic sanctions.
The pipeline is a source of concern to the US because of another reason. It will increase the dependency of Europe on Russia for oil. Currently , there is a Ukrainian oil pipeline in place but and once the Nord Storm 2 becomes operational, it will easily bypass the transit revenue that is paid to Ukraine which is close to USD 3 billion per year.
The Minister of Foreign Affairs of Ukraine Dmytro Kuleba and the Minister of Foreign Affairs of Poland Zbigniew Rau came out with a joint statement criticising the American decision to approve the deal between Germany and Russia. In the joint statement, the two ministers have asked for talks between the concerned parties to address issues of insecurity and political crisis. Ukraine and Poland shared their decision to work together to oppose Nord Stream 2 until some strategies were agreed upon through cooperation between the western democratic countries to reduce the threats to energy peace and security.
German Chancellor Angela Merkel defended the deal by saying that there were always tools to handle in case a problem arose. Ukraine continues to raise voice against the issue of credibility on part of Russia to deal with the obligations. Reuters reported that Germany will also contribute to a “Green Fund for Ukraine” amounting to a total of USD 175 million.
US President Joe Biden’s decision to give a “nod” to the deal has met with many oppositions within the country. The next few days will unravel the future and scope of the deal that will be signed while the stake holders discuss the nuances.
