By Valeriya Kalytchuk
With the end of a pandemic summer, the EU was facing another challenge caused by the rise of natural gas prices. This time, it was not about travel restrictions or mask mandates but the possible power shortages if no swift action is taken. However, unlike the unexpected virus, the issue has been brewing within the Union for years. Not being able to diversify its energy sources and failing to turn to more renewable fuel, the EU has become more and more dependent on Russia, as reflected in the constant increase of its energy import from that country. (Wald, 2021) At present, 50% of EU’s energy comes from a country that does not even share its values. The EU has had this problem on its shoulders for a long time. It let it grow with the Nord Stream 2 project that is objected to by its near and remote allies. Now that Angela Merkel, an ardent defender of the project, has been replaced, and Nord Stream 2 is not yet certified, the EU is left with a finished but non-functioning pipeline that most EU governments oppose.
Divided Europe
Russia is the EU’s 5th largest trading partner, however, this relationship is not built on cooperation, trust, and stable politics. That is the reason why it continues to deteriorate every year. Nevertheless, any effort to stand up to Vladimir Putin has been resisted by Germany, which insists that Russian gas is necessary for the bloc. This has gone hand in hand with contradictory positions held by high-ranking officials like Josep Borell, who has stated that “Nord Stream 2 was not launched by the European Union, … it is not a European Union project. It is not being funded by the EU. It is a German project.” (Nardelli, 2021) A statement like this shows the extent of the divisions within the EU and makes it clear that no consensus on the issue is likely to be reached anytime soon. However, what is clear is that Russian gas will go throughout Europe, and every member state will indirectly benefit from Nord Steam 2. Germany was just chosen as a scapegoat, left on its own to take the blow of criticisms.
The issue becomes even more complicated from Germany’s point of view. The agreement about the Nord Stream Pipelines has been concluded between the Russian and German companies long before the Russia- EU relationship deteriorated. (Liik and Hackenbroich, 2021) It is simply not good for the German reputation as a pragmatic rule-follower to give up on a commitment that it has made in the past. Moreover, on Germany’s side, Nord Stream 2 is not a political project, but mostly an economic one, which is reflected in the involvement of many of its national companies in the construction. The pipeline is also important for cutting back on CO2 emissions because it will reduce German dependence on coal, producing more carbon dioxide than gas. (Wettengel, 2021)
Values vs. Interests
However, for the other countries, this project does not yield such benefits as for Germany. Nord Stream 2 does not only make non-EU states, like Ukraine and the US, lose faith in the EU, it has also turned some member states bitter and wary of the German initiative. For example, Poland, already a backsliding democracy, cannot afford to lose the revenues of a current gas pipeline going through its territory. Italy, whose South Stream project was scrapped in favor of Nord Stream, even though the latter one goes against the Union values. Such a situation leads to an impression of Germany that prioritizes economic benefit over security in everyone’s eyes. (Liik and Hackenbroich, 2021) In the past, this country has shown a good track record of maintaining a balance between values and economic interests under the leadership of Angela Merkel who is no longer the Chancellor of Germany. It is still unclear how the new chancellor Olaf Sholz will proceed with the issue. However, one thing that is evident. It is that the pipeline undermines the values of the EU as a whole and gives Russia the upper hand, making the economic powerhouse of Europe dependent on Gazprom’s will. For the rest of the world, it just seems like the EU is putting aside its dedication to protecting liberal values to cooperate with an undemocratic country.
An Overseas Perspective
Last but not least, one cannot forget about the elephant in the room- the US, that is continually urging the EU to buy gas and fuel from America and put an end to the dependence on Russia. This is even more emphasized by the fact that Joe Biden has openly criticized the Nord Stream 2 project. However, he does not support the continuation of the sanctions on the companies involved in the building as beneficial for the EU-US relationship. (Jacobs and Epstein, 2021) Therefore, they have been removed, and in exchange, Germany and US signed a deal to fund and help Ukraine with its Green Infrastructure. All of this while Washington is still trying to convince the EU to turn to the American liquefied natural gas (LNG) as a source of energy. (Wettengel, 2021) Many European reports show that this would help the EU and Germany, in particular, to be more energy-sufficient and remove the security threat of depending on Russia out of sight.
References
Jacobs, Jennifer and Jennifer Epstein. 2021. “Biden Says He Waived Nord Stream Sanctions Because It’s Finished,” Bloomberg.com, May 26, 2021. https://www.bloomberg.com/news/articles/2021-05-25/biden-says-he-waived-nord-stream-sanctions-because-it-s-finished?utm_source=twitter&utm_medium=social&utm_content=business&utm_campaign=socialflow-organic&cmpid=socialflow-twitter-business
Liik, Kadri and Jonathan Hackenbroich. 2021. “The Nord Stream 2 Dispute and the Transatlantic Alliance,” ECFR, April 20, 2021. https://ecfr.eu/article/the-nord-stream-2-dispute-and-the-transatlantic-alliance/
Nardelli, Alberto. 2021. “EU’s Russia Strategy Ignores Germany’s Nord Stream 2 Issue,” Bloomberg.com, June 16, 2021. https://www.bloomberg.com/news/articles/2021-06-16/eu-s-russia-strategy-ignores-problem-of-nord-stream-and-germany
Wald, Ellen. 2021. “The EU Contributed to Its Own Energy Crisis, but Diversification Can Solve It,” Atlantic Council, November 24, 2021. https://www.atlanticcouncil.org/blogs/energysource/the-eu-contributed-to-its-own-energy-crisis-but-diversification-can-solve-it/
Wettengel, Julian. 2021. “Gas Pipeline Nord Stream 2 Links Germany to Russia, but Splits Europe,” Clean Energy Wire, September 9, 2021. https://www.cleanenergywire.org/factsheets/gas-pipeline-nord-stream-2-links-germany-russia-splits-europe