Thursday, September 3, 2020

Will the Nord Stream 2 Pipeline Project Just End?

When Trump went after the Germans over the advancing new pipeline....this was over the topic of limiting the business sector to only Russian natural gas.  (note here: I don't complain over the Russian natural gas that flows into my German house, or the use of the gas in frightful German winters).  Trump basically wanted an open situation, where US or non-Russian gas would be part of the environment.

The German government?  They have no deal or involvement in the Nord Stream 2 pipeline project.  No money at all.

Permission?  Basically, the Germans and the EU signed off on the environmental concerns, and allowed it to proceed.  Beyond that....there's no investment into this deal.

Well, today....it got brought up via ARD news that the Chancellor is now reviewing the Kremlin critic Navalny poisoning, and Merkel has to find an answer to the Russian mess developing.  So the discussion centers on stalling the pipeline?  More than halfway finished?  Well, that's part of the story.

If the Germans did stall it?  There could be punishment coming from the Russians, and the other pipeline might have faults this winter, and less gas be pushed through.  Naturally, that would freak out Germans who depend upon Russian natural gas.

The Trump offer to sell natural gas to Germany?  This would come quickly into focus.

The curious thing....if you follow the ARD news discussion....other members of the EU are agreeable that some type of punishment has to occur on Russia. 

I would imagine the Russian feel that the Germans at the table won't play poker or risk serious consequences for this winter.  If the Germans go this way?  Well, it proves Trump right....that alternate sources ought to exist, and you are more selective in who you deal with. 

A massive amount of cash used to buy the pipeline up to this point?  Yes, and for some Russian companies.....it's a serious loss if the project gets dropped over this poisoning episode. 

So it brings you back around to asking why poison the guy in the first place?  Was he that big of a threat? 

A lot of questions, and a lot of consequences on the horizon. 

2 comments:

M1-19k said...

Neither Ted Cruz or any other ignorant GOP senator has the right to tell Germany how to manage their domestic fuel situation. The GOP has done more than enough to alienate all of the USA former allies. Please vote absentee ballot.

Schnitzel_Republic said...

In this case, the Germans were proceeding on their own and you could say that since no government funding was involved, nothing mattered. But once this Russian political figure was poisoned (in a severe way), things changed. Some type of severe signal has to occur, via the Germans and the EU. At the least, I might suspect a one year stall to now occur.

Since gas already passes into Germany via an old pipe, its not a big deal.

I will say this, having only one source does not guarantee a competitive situation.