PREFACE/ISSUE
The USA main issue about the Nordstream 2 AG is securing the energy security of its ally would something bad happen with Russia down the road.
- In 2021 there was an agreement between Germany about the Nordstream 2 that in case the Russia attacks Ukraine the certification will not go forward.
- The US reached their diplomatic objectives in this regard.
- The US did not have further objections about Nordstream 1 pipeline needed for German energy security.
- They even allowed Canada to return turbines to for Nordstream 1.
So why would they suddenly become unreliable partner to Germany when diplomacy with Berlin worked in the past? Is the Biden statement about Nordstream 2 actually an alibi in reverse as he has not demanded Germany to cut all RU deliveries? For USA Germany is a strong partner and it is not in US interest to weaken it in face of Russian and Chinese threats. But for UK the Germany and EU are direct competitors and they have always been against both Nordstream 1 and Nordstream 2.
"Was USA going after Nordstream AG or Nordstream 2 AG or both?"
“Europe’s energy supply is a matter for Europe, and not for the United States of America,” Germany’s Foreign Minister Sigmar Gabriel and Austria’s Federal Chancellor Christian Kern said in a joint statement.
The two politicians warned that it wouldn’t “only be highly regrettable, but also damaging” to their countries’ cooperation on the Ukraine crisis if “irrelevant considerations such as U.S. economic interest in exporting gas were to gain the upper hand.” At the heart of their push-back is the planned expansion of the Nord Stream gas pipeline between Russia and Germany.
“To threaten companies from Germany, Austria and other European states with penalties on the U.S. market if they participate in natural gas projects such as Nord Stream 2 with Russia or finance them introduces a completely new and very negative quality into European-American relations,” they said.
I. The USA and worries about EU´s energy security, it has never sanctioned existing Nordstream 1 AG project fully
The CEO of Russia’s Gazprom , Alexei Miller, said on Friday (6 April) he was proud of having been included on a new US sanctions list and that the company’s policies were right.
“Not being included in the first list I even had some doubts – may be something is wrong (with me)? But I am finally included. This means that we are doing everything right,” Miller said through his spokesman.
Protecting Europe’s Energy Security Act of 2019 ("S. 1441") – that would impose sanctions on the provision of certain vessels used in the construction of Russian energy export pipelines, including Nord Stream 2.
US threatens secondary sanctions over the European Nord Stream 2 pipeline. Foreign parties involved in the construction could be subject to future US sanctions.The Nord Stream 2 pipeline, currently under construction and led by Russian state company Gazprom, intends to ship Russian natural gas from Russia across the Baltic Sea to Germany and into the EU's internal market. The US views the pipeline as a Russian foreign policy tool and has long opposed its existence.
On 12 June 2019 at a White House press conference, President Trump threatened US sanctions to derail the construction of the Nord Stream 2. President Trump remarked at that Nord Stream 2 “really makes Germany a hostage of Russia if things ever happen that were bad” and directly stated that the Administration is "looking at" imposing sanctions to bring the pipeline to a halt.
Protecting Europe's Energy Security Act of 2019 ("H.R. 3206") – to the House of Representatives. The rationale is to prevent the Russian government from using the Nord Stream 2 as "a tool of coercion and political leverage" and from making "European countries dependent on Russia for energy supplies, so as to increase this political leverage", according to the H.R. 3206.
3 Jan 2022 - US imposes secondary sanctions over Nord Stream 2
On 20 December 2019, President Trump signed into law the National Defence Authorisation Act for Fiscal Year 2020 (the "NDAA"). Section 7503 of the NDAA contains legal basis for imposing targeted secondary sanctions on vessels, entities and individuals determined to engage in the construction of the Nord Stream 2 pipeline.
The sanctions aim to counter Russian aggression against Ukraine and to decrease what the US sees as significant European reliance on Russian natural gas, according to a fact sheet released by the US State Department.
...the sanctions do not seem to target the investors or owners behind the pipeline, but rather, for example, the European vessels performing the construction work and the European specialist companies contracting these vessels...
...However, the NDAA allows for a grace period, giving persons and entities 30 days to wind down operations that would otherwise expose them to sanctions...
Evolving U.S. and German Policy
The Biden Administration has called Nord Stream 2 a “bad deal” and said U.S. opposition to the pipeline is “unwavering.” Nevertheless, prior to Germany’s suspension of the certification process, U.S. officials suggested the Administration’s ability to prevent the pipeline from becoming operational was limited, even with additional sanctions. They also expressed concern that additional U.S. sanctions could have jeopardized U.S.-German and U.S.- European cooperation in other areas, including countering Russian aggression. Accordingly, the Administration’s diplomatic efforts focused on helping Ukraine maintain its leverage as a gas transit country.
Nord Stream 2/TurkStream pipelines, and Turkey
The NDAA 2021 would add further to these existing sanctions designed to counter the pipeline projects.Firstly, Section of 1242 of NDAA 2021 would expand the scope of PEESA-sanctions from vessels engaged in "pipe-laying," to also include vessels engaged in "pipe-laying activities". This term is relatively broadly defined to mean: "activities that facilitate pipe-laying, including site preparation, trenching, surveying, placing rocks, backfilling, stringing, bending, welding, coating and lowering pipe."
...Furthermore, the PEESA sanctions would extend to those that "provide service for the testing, inspection, or certification necessary or essential for the completion or operation of the Nord Stream 2 project."
[M: Note that the USA sanctions did not include existing Nordstream AB pipeline.]
II. The USA-GER Nordstream 2 Deal
6 Oct 2021 - Gazprom's Nord Stream 2 can challenge EU rules, EU court adviser says
Gazprom's Swiss unit can challenge an EU gas rule that requires gas producers to be separate companies from those that control the pipeline, an adviser to the EU's top court said on Wednesday.
BERLIN — Germany's new government on Tuesday gave the clearest indication yet that it would discuss halting the Nord Stream 2 gas pipeline if Russia attacks Ukraine.
German Chancellor Olaf Scholz offered his strongest warning to date at a press conference with NATO Secretary-General Jens Stoltenberg, where he was pressed about whether penalizing Nord Stream 2 was part of the "severe economic costs" Germany has said Russia will face if it invades Ukraine.
"It is clear that there will be a high cost and that all this will have to be discussed if there is a military intervention against Ukraine," Scholz said.
Scholz said his government "stands by all aspects" of a deal his predecessor Angela Merkel reached with U.S. President Joe Biden last year, under which Germany promised to take action at the national level and press for EU sanctions should Russia "use energy as a weapon or commit further aggressive acts against Ukraine."
23 Feb 2022 - U.S. Sanctions Nord Stream 2 AG After Germany Mothballs Gas Pipeline
President Joe Biden announced Wednesday that he had directed the U.S. to impose sanctions on Nord Stream 2 AG and its corporate officers, a decision that comes a day after the German government announced it would halt certification of the company’s gas pipeline.
“By acting together with the Germans how we did, when we did, and the way in which we did, we have ensured that this is an USD 11 billion prize investment that is now a hunk of steel sitting at the bottom of the sea,” said U.S. State Department spokesman Ned Price. '
23 Feb 2022 - White House imposes sanctions on Nord Stream 2 pipeline company and CEO
23 Feb 2023 - Sanctioning NS2AG, Matthias Warnig, and NS2AG’s Corporate Officers
The United States applauds Germany’s decision to take administrative steps to halt the certification process for Nord Stream 2, which will prevent the pipeline from becoming operational. After consultations with Germany and the EU, I have terminated the waiver and imposed sanctions on Nord Stream 2 AG (NS2AG), its CEO Matthias Warnig, and This action is in line with the United States’ longstanding opposition to Nord Stream 2 as a Russian geopolitical project and the President’s commitment that Nord Stream 2 would not move forward following the beginning of Russia’s invasion of Ukraine.
I determined on May 19, 2021, in a report to Congress, that NS2AG and Mr. Warnig knowingly facilitated deceptive or structured transactions to provide the pipe-laying vessel Fortuna for the construction of NS2. I further determined it was in the national interests of the United States to waive sanctions on NS2AG, Mr. Warnig, and NS2AG corporate officers, in order to enable diplomacy with Germany to address the negative impacts of the pipeline, should it become operational.
To this end, on July 21, we joined with Germany to issue the “Joint Statement of the United States and Germany on Support for Ukraine, European Energy Security, and Our Climate Goals.”
This close diplomatic coordination has continued, including throughout Russia’s military build-up in recent months. Following Russia’s actions this week, the United States and our European allies implemented strong coordinated sanctions, and Germany announced that it was halting the certification process for Nord Stream 2. In this context, I have determined those waivers are no longer in the national interest of the United States.
As a result of the termination of the waiver of sanctions, NS2AG and Mr. Warnig are now sanctioned under the Protecting Europe’s Energy Security Act (PEESA), implemented through Executive Order (E.O) 14039.[M: Warning is the CEO of the Nord Strem AG ... NS1. This is a known fact.]
Germany was a reluctant but essential ally, and the Biden administration made a controversial decision last summer that was probably crucial in gaining German support against Russia. Biden gave Germany a pass on an initial round of sanctions against a company building the Nord Stream 2 pipeline in exchange for a pledge from Chancellor Angela Merkel that if Russia invaded, Nord Stream 2 would be scrapped. When the invasion came, Merkel was gone but her successor, Olaf Scholz, kept the promise.
11 July 2022 - The United States Supports Canada’s Decision to Return Turbine to Germany
"The United States is united with our Allies and partners in our commitment to promoting European energy security, reducing our collective dependence on Russian energy, and maintaining pressure on the Kremlin.
In that vein, we support the Canadian government’s decision to return a natural-gas turbine to Germany for use in the Nord Stream 1 pipeline.
In the short term, the turbine will allow Germany and other European countries to replenish their gas reserves, increasing their energy security and resiliency and countering Russia’s efforts to weaponize energy.
We are working with our Allies and partners to reduce our collective dependence on Russian energy and maintain pressure on President Putin, including exploring ways to further reduce Russia’s energy-derived revenues to continue curtailing Russia’s ability to fund its brutal, ongoing war in Ukraine. At the same time, we are taking active steps to limit the impact of President Putin’s war on global energy markets and protect our economies...".
12 July 2022 - Gazprom’s Shunned Nord Stream 2 Wins Spat Over EU Pipeline Rules
- EU top court says gas project’s challenge is admissible
- Lower EU court will have to rule on substance of dispute
Russia’s shunned Nord Stream 2 gas pipeline won a legal boost in its pre-war challenge against European Union rules that subjected all new and existing pipelines involving foreign suppliers to the EU’s energy market-opening requirements, after the bloc’s top court said its appeal can be heard.While the ruling is a win for Nord Stream 2, its impact may have been overtaken by events in Ukraine, which led Germany to withdraw its backing for the project.
12 July 2022 - Judgment of the Court in Case C-348/20 P | Nord Stream 2 v Parliament and Council
The Court declares the action brought by Nord Stream 2 AG against the directive extending certain rules of the internal market in natural gas to pipelines from third countries to be partially admissible
13 July 2022 - EU court points to future resurrection of Russian gas pipe (NS2)
Canada will allow for the maintenance of five turbines used by Russia's Nord Stream 1 pipeline as scheduled, the Canadian government confirmed this week.
Ottawa had granted an exception to sanctions on Russia's oil and gas industry in July, allowing the return of a first turbine for the gas pipeline to Germany. However Russian gas supplier Gazprom refused to accept the turbine, blaming technical issues and missing documents.
Despite Gazprom's rejection, the Canadian foreign minister said the permit as it stands allows for the maintenance of the five other turbines as scheduled and their return to Germany.
Germany is unlikely to meet its target for filling natural gas storage sites to 95% by the start of November following the latest Russian supply cut, according to people familiar with the matter.
22 Sept 2022 - Germany nationalises Uniper to prevent bankruptcy
On Wednesday, the German Government announced it had reached an agreement to nationalise power generator Uniper to prevent the company’s collapse.
Uniper had also taken out a loan to finance the now-cancelled Nord Stream 2 pipeline. The company wrote off these investments as a result of economic sanctions by Western countries following Russia’s invasion of Ukraine.
III. Cutting off the toxic power and pipelines from authoritarian regimes
20 Sept 2022 - Prime Minister Truss to make announcement during UN General Assembly this week"Ukraine’s victories in recent weeks have been inspirational. Time and time again these brave people have defied the doubters and showed what they can do when given the military, economic and political support they need.
My message to the people of Ukraine is this: the UK will continue to be right behind you every step of the way. Your security is our security."
“By turning off the taps of Nord Stream gas pipeline, Putin has consigned millions of people in Europe to a colder and more difficult winter,” Truss said, referring to the closure of the main gas pipeline to Europe.
[M: This is factually incorrect, sanctions were ehind issues with deliveries, Russia could legally stop all gas if it wished to as a retaliation anti-sanction measure, it did only lowered volume to level allowed by working turbines, see here. Politicians made a grave mistake and deflect blame. Merkel said clearly Russia has NOT used its gas transit weapon in June: "In this sense, gas was not a weapon," Merkel said." - here.]
She said that "too many lives in Ukraine, Europe and around the world are being manipulated by a dependence on Russian energy. We need to work together to end this once and for all.”
21 Sept 2022 - UK Prime Minister Truss addresses
the United Nations General Assembly
01:00 min: "...Geopolitics is entering a new era.."
06:00 min: "We are cutting off the toxic power and pipelines from authoritarian regimes and strengthening our energy resilience."
"We will ensure we cannot be coerced or harmed by the reckless actions of rogue actors abroad."
"The free world needs this economic strength and resilience to push back against authoritarian aggression and win this new era of strategic competition.
We must do this together."
We are fortifying our deep security alliances in Europe and beyond through NATO and the Joint Expeditionary Force.
08:30 min: "The UK is providing funding, using the might of the City of London and our security capabilities to provide better alternatives to those offered by malign regimes.
The resolute international response to Ukraine has shown how we can deliver decisive collective action.
The response has been built on partnerships and alliances and also on being prepared to use new instruments – unprecedented sanctions, diplomatic action, and rapid military support.
There has been a strength of collective purpose – we have met many times, spoken many times on the phone, we have made things happen.
Now we must use these instruments in a more systematic way to push back on the economic aggression of authoritarian regimes.
The G7 and our like-minded partners should act as an economic NATO, collectively defending our prosperity.
If the economy of a partner is being targeted by an aggressive regime we should act to support them. All for one and one for all.
12:00 min "In all these areas, on all of the fronts, the time to act is now. This is a decisive moment in our history, in the history of this organization and in the history of freedom...
The story of 2022 could have been that of an authoritarian state rolling its tanks over the border of a peaceful neighbour and subjugating its people.
Instead, it is the story of freedom fighting back.
In the face of rising aggression we have shown we have the power to act and the resolve to see it through.
But this cannot be a one-off.
This must be a new era in which we commit to ourselves, our citizens, and this institution that we will do whatever it takes – whatever it takes to deliver for our people and defend our values."
Britain’s commitment to this is total.
We will be a dynamic, reliable and trustworthy partner.
26 Sept 2022 - Nordstream pipelenes are attacked.
28 Sept 2022 - ‘Act of Sabotage’ Hits Europe’s Energy and Stocks Markets
Natural gas prices soared in Europe and stocks fell, as officials investigate the causes of the Nordstream 1 and 2 gas pipeline explosions.
IV. Still hanging there - still fighting - one line of the NS2 is not dead yet
22 Nov 2022 - Gazprom wins appeal against huge Nord Stream 2 antitrust fine in Poland
Russia’s Gazprom has won an appeal against a fine of over €6 billion imposed on it by Poland’s antitrust authority, UOKiK, for constructing the Nord Stream 2 gas pipeline without first seeking Polish approval. UOKiK now says that it plans to challenge the ruling.
A Swiss court has granted a six-month “stay of bankruptcy” to the operating company for the never-opened Nord Stream 2 pipeline, which was built to bring Russian gas to Germany but put on ice shortly before Russia invaded Ukraine in February.Nord Stream 2 AG, a subsidiary of Russia’s Gazprom, is based in Zug. Nord Stream 2′s court-appointed administrator, Transliq AG, sought the extension.
04 April 2022 - Exclusive: German insurers renew cover for blast-damaged Nord Stream gas link
CONCLUSION/SUMMARY:
Past shows that diplomacy and cooperation worked with Germany. There was a deal about Nordstream 2 to be put on hold in case Russia goes into Ukraine. That deal was kept.
USA could not afford the loss of credibility to Germany.
USA understood that Nordstream 1 was integral part of German energy security and would not destroy it without first pressuring Germany officially through diplomacy.
The energy insecurity was brought up by sanctions, unability to service pipelines (not just Nordstream but also others) not Gazprom actions.
The Nordstream 1 and 2 AB is not dead - legal battles are just starting.
It looks like the UK was behind and USA had to cover, if willingly or not is right now unknown.
The state actor will be revealed.
Question:
It is possible that USA had nothing to do with the sabotage?
It looks like next Sy Hersh revelation is also off.
Who could it be? --> About the UK-USA "special relationship"
No comments:
Post a Comment