Donald Trump, Angela Merkel, and Vladimir Putin will talk about next week at the meeting of “Big twenty”. One of the main themes is the politics of pipelines.
Germany builds himself the conscience of Europe. Besieged by the hordes of refugees that Germany takes them, and rebukes those who refuse to do it. Germany claims that it stands for European unity in the fight against the insidious forces of individual States. Germany makes fun of the United States because they elected a rookie right wing, moreover, real estate dealer. Germany stood in the way of imaginary trump’s plans to weaken NATO and split the European Union. But the same Germany, which declared itself a model of European values, single-handedly leading the battle, which aims to help the country-the outcast Putin in achieving those political goals that are beneficial to the German corporations.
Russia and Europe, pushing US to the margins, lead pipeline war throughout the time that Putin is in power. European leaders realized that a unified Europe needs a unified and diversified energy market, operating in accordance with the General rules of conduct. Supporters of the European experiment, the most active among them was Germany, the idea is to counteract Russia’s attempts to establish its supremacy in the European gas market. As it is not so.
Berlin actively supports the project “Northern stream-2”, as they call second pipeline, which Russia proposed to build under the Baltic sea to pump it Russian natural gas to Germany. Its capacity would more than double the current pipeline “Nord stream-1” and it will redirect gas flows, having withdrawn them from Eastern and Central Europe, and gradually wiping out the supply of gas through Ukraine. “Nord stream-2” should start operating in 2019, and he cast a long shadow on the developing LNG market, which should become the main guarantor of European energy security.
Agreement on the “Nord stream-2”, signed without the approval of EU partners and with European institutions, is consistent with the objectives of European energy policy, such as diversification, to prevent energy conflicts among member countries, providing smaller EU countries independent sources of supply, as well as the General policy of the EU towards Russia and Ukraine.
Telling the stories of corrupt ties trump with the Russians, German media do not pay attention to vicious relationship of their country with Russia, which covers the whole political spectrum. Former German Chancellor Gerhard Schroeder is part of the Board of Russian state gas monopoly Gazprom. The economy Minister of the German government and foreign Minister (both are members of a large coalition of Germany) openly advocate the deepening of relations with Russia, despite the illegal annexation of Crimea, the armed conflict in Ukraine and covert cyberattacks, conducted across Europe. In response to all of these offenses influential German supporters of Putin say that politics should not interfere with business.
Russia does not have enough money because of poor economic performance, expensive modernization of the army, the sanctions imposed because of the Crimea, Ukraine and the downed plane MH17. The project “Northern stream-2” is apparently overcame financial obstacles, when the five largest energy companies in Europe (three of them German and Austrian) 24 April 2017 agreed to funding half of this project with a total cost of 10.3 billion dollars. The second half will pay “Gazprom”, which will own a controlling stake in the project.
It seems that there is full readiness for the construction of “Nord stream-2”. Regulatory impediments to construction there are few, but the project has its opponents and critics, determined to cancel it or delay its implementation.
Among these opponents and critics is part of the EU itself. “Nord stream-2” is contrary to the concept of a European energy Union, which aims to “diversify the sources of energy supplies to Europe and ensure energy security at the expense of solidarity and cooperation between EU countries”. The European Commission, being the curator of the energy Union, says that is responsible for making decisions in relation to the “Nord stream-2”. Germany does not agree.
German Chancellor Angela Merkel rejects the claims of the European Commission in place at the negotiating table. “Nord stream-2”, says she, this is a commercial decision and to assume it is private companies, including German energy giants EON and Wintershall. Merkel, who declared himself the guarantor of European unity, in a strange way came into conflict with the European Union itself.
Ukraine has become the most fierce opponent of the “Nord stream-2”. With its construction Russia will be able to supply to bypass the Ukrainian transit network, although the country has long been a major transit country for Russian gas to Europe. “Nord stream 2” may deprive Ukraine of its annual revenue from transit in the amount of two billion dollars. After opening the “Nord stream-1” Russia has transferred some of the gas supplies to Ukraine on its new Baltic route despite allegations that Ukraine will not suffer.
Poland and other Central European countries, which accounted for 20 percent of the imported Russian gas, this is the third opponent of the “Nord stream-2”. They can lose their gas pumped through Ukraine. If you start to work, “Nord stream-2”, these countries will be increasingly dependent on Russian gas supplies to Germany, and pipeline system from Germany to Central Europe is not sufficiently developed.
The us Senate last declared war on the “Nord stream-2”. 15 June, he has voted for sanctions in the punishment of Russia for her alleged interference in the elections of 2016. Now the bill must be approved by the house of representatives, after which he will go to the signature to the President. The law provides for “extensive new sanctions against key sectors of the Russian economy such as mining, metallurgy, marine and rail transport”. In concrete terms, this law “is directed against the pipeline “Nord stream-2″, because it will have a detrimental effect on energy security of the European Union… and the energy reform in Ukraine”.
The Senate approved the sanctions have forced Germany and Austria to perform with the sharp joint communiqué, which States: “Supplies of energy in Europe the case of Europe, not the US. We decide who and how to supply energy in accordance with the applicable rules and regulations of economic competition”. The United States has no right to interfere in the internal economic Affairs of other countries, and in this case they do it to promote its own industry (LNG). In the joint communiqué, sounds the statement that “sanctions as a political tool cannot be linked to economic interests”.
Because of the threat of financial sanctions against companies and individuals involved in the “Nord stream 2” this project may not happen. “Gazprom” and its five European partners in the project must contribute five billion dollars every. Sanction of the Senate in their current form threaten them with expulsion from the world’s capital markets. In such a situation, international financial institutions and major foreign banks do not want to go against the will of the American Ministry of Finance, whose long arms. And although Germany claims that the United States cannot “threaten European companies, which contributed greatly to the development of the European system of energy supply, the extraterritorial sanctions that contradict the norms of international law”, the companies themselves can come to the conclusion that the costs of countering the us sanctions are too great.
The German authorities argue that the “Nord stream 2” is a normal commercial deal, which has nothing to do with politics. Of course, they understand that Gazprom is not a commercial company, and Russian gas “Ministry” representing the political interests of the country. Incredibly low market capitalization of the Corporation suggests that this is not a commercial organization. Company with such markets and the stocks should be worth five times more expensive.
Being a political organization, “Gazprom” primarily responsible for promoting the long-term political objectives of Russia, including political and economic isolation of Ukraine, the creation of a network of influential business contacts in Europe, and when the time comes — use of dominant position of Gazprom in the market for setting one country against another and to punish those who do not support Russian policy.
Corporate Germany did not understand that cooperation is the most powerful of the German energy concerns with “Gazprom” delivers a clear signal on the normalization of relations? Deal on $ 10 billion seems to be saying that the West is ready to forget about the Crimea and about 10 thousand people killed in Eastern Ukraine due to Russian aggression. Yes, Europe is ready to accept Putin’s assertions that Ukraine no Russian soldiers. No, MS Merkel, you can’t separate politics from business. If you do so, it will only benefit Putin.