PREFACE/ISSUE
It looks like Russia could just legally stop delivering gas to Europe as a response to sanctions. What happened AFTER West imposed sanctions on Russian energy?
3 June 2019 - US threatens secondary sanctions relating to Nord Stream 2...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...
and about sanctions against Nordstream 2.
III. Warning the West ignored
Unilateral sanctions are always double-edge sword
11 Nov 2021 - Belarus warns against new EU sanctions, says could cut gas supply
Belarus's strongman leader Alexander Lukashenko vowed Thursday to respond to any new sanctions imposed over the migrant crisis on the country's border with Poland, including by potentially cutting off the transit of natural gas to Europe."If they impose additional sanctions on us... we must respond," Lukashenko said in comments to officials released by the presidency.
"We are warming Europe, and they are threatening us," he said, pointing out that Russia's Yamal-Europe gas pipeline transits through Belarus to Poland."And what if we halt natural gas supplies?"
24 Feb 2022 - Nord Stream 2 investor Wintershall awaiting compensationThe German oil company expects to be paid back the hundreds of millions in loans toward the project should the contentious gas pipeline ultimately never be switched on. German gas and oil firm Wintershall Dea said on Thursday that it expects to be compensated after Chancellor Olaf Scholz blocked the certification of the Nord Stream 2 gas pipeline.Wintershall Dea was one of the main investors is the project, which is based in Switzerland but wholly owned by Russian state energy giant Gazprom.Scholz has indefinitely blocked the pipeline over Russia's invasion of Ukraine. Following the move, the US government announced it would sanction Nord Stream 2's holding company and its directors.4 March 2022 - Putin wants ‘normalization’ of global relations, saying there is ‘no need’ for sanctions on Russia“There is no need to escalate the situation, impose restrictions. We fulfil all obligations,” he said. “If someone does not want to cooperate with us within the framework of single cooperation, and by doing so harms themselves, they will, of course, harm us, too.”
31 March 2022 - Decree 172
President Vladimir Putin signed a decree − decree 172 − that obligated, starting 1 April, purchasers of Russian pipeline gas from countries on Russia's Unfriendly Countries List to make their payments for Russian gas through a facility run by Russia's Gazprombank, a subsidiary of Gazprom.
29 April 2022 - Gazprombank account not necessarily breach of sanctions, German economy ministry says
Germany's Economy Ministry clarified that European energy companies won't be in breach sanctions if they comply with decree 172 saying in an emailed statement that "According to these guidelines, account K, to which payment is made in euros/dollars, is in line with the sanctions if companies declare that contracts have been fulfilled with payment in euros or dollars."
11 May 2022 - Ukraine's gas grid operator to suspend Russian gas flows via Sokhranivka
Ukraine's state-owned gas grid operator GTSOU said May 10 it had declared force majeure on the transit of Russian gas entering the Ukrainian system at Sokhranivka and would not accept gas at the entry point from May 11.
Ukraine's state-owned gas grid operator GTSOU halted the flow of natural gas through the Sokhranovka transit point, which had transported about one third of all of piped Russian natural gas that transited through Ukraine. It was the first time since the start of Russia's 24 February invasion of Ukraine that natural gas flow through Ukraine was interrupted. The Ukrainian government stated that it would not reopen this pipeline unless it regained control of areas from pro-Russian fighters.
11 May 2022 - Europe faces gas supply disruption after Russia imposes sanctions
Russia imposed sanctions on European subsidiaries of Gazprom which had been nationalized by European countries.
Dutch gas prices at the TTF hub, the European benchmark, rose by about 20 percent on Thursday morning.
The uptick came after Russia rolled out its sanctions late on Wednesday, mainly on Gazprom’s European subsidiaries including Gazprom Germania, an energy trading, storage and transmission business that Germany placed under trusteeship last month to secure supplies.
Moscow also targeted the owner of the Polish part of the Yamal-Europe pipeline that carries Russian gas to Europe, EuRoPol Gaz. The pipeline is jointly owned by Gazprom.
“A ban on transactions and payments to entities under sanctions has been implemented,” Gazprom said in a statement. “For Gazprom, this means a ban on the use of a gas pipeline owned by EuRoPol GAZ to transport Russian gas through Poland.”
Last year, EU countries got about 155 billion cubic metres of gas from Russia.
12 May 2022 - Russian sanctions prohibit Gazprom from using Yamal-Europe for gas transit via Poland
Russian sanctions imposed on a number of foreign energy companies prohibit Gazprom from using the gas pipeline owned by EuRoPol GAZ (a joint venture between Gazprom and the Polish PGNiG, which owns the Polish section of the Yamal-Europe gas pipeline) to pump Russian gas through Poland, the Russian holding’s spokesman Sergey Kupriyanov said on Thursday.
"A ban has been established on transactions and payments in favor of persons under sanctions, in particular, for Gazprom, this means a ban on the use of a gas pipeline owned by EuRoPol GAZ to transport Russian gas through Poland," he said.
The Polish side repeatedly violated the rights of Gazprom as a shareholder of EuRoPol GAZ, and in late April added the Russian company to the sanctions list, blocking the ability to exercise rights to shares and other securities of the joint venture and receive dividends, Kupriyanov said.
Earlier, the Russian government blacklisted 31 companies from Germany, France and other European countries, as well as from Singapore and the USA. In particular, the list includes former European subsidiaries of Gazprom, traders, operators of underground gas storage facilities (UGS), as well as a joint venture between Gazprom and the Polish PGNiG, which owns the Polish section of the Yamal-Europe gas pipeline - EuRoPol GAZ.
20 May 2022 - Gazprom announced that it had informed Finland
...that the next morning, natural gas deliveries to the country would be halted due to the refusal of the Finnish state-owned gas wholesaler to pay in rubles (that is, to comply with decree 172)
20 May 2022 - Germany and Qatar signed a declaration to deepen their energy partnership. Qatar plans to start supplying LNG to Germany in 2024.
V. Maintenance of Canadian Siemens and UK Rolls-Royce turbines
Portovaya compressor station... Six of these eight compressors are 52 Megawatt (MW) units “using Siemens SGT-A65 turbines produced in Canada” and two are 27 MW units “using SGT-A35 turbines produced and overhauled by Siemens’ facility in Aberdeen” UK. Siemens Energy acquired the Rolls-Royce turbine business in 2014.
14 June 2022 - Gazprom turbines announcement
Siemens issued a statement confirming that a gas turbine was ‘currently unable’ to return from maintenance in Canada due to sanctions, adding that the Canadian and German governments have been ‘informed’ and were ‘working on a viable solution’.'
14 June 2022 - Canada caught between allies as Germany presses for return of Russian turbineRobert Habeck, Germany's finance minister and deputy chancellor, has acknowledged that his country made a "grievous mistake" when it allowed itself to become so dependent on Russian energy. But Habeck said Berlin now has no choice but to ask Canada to override its sanctions and return the turbine.15 June 2022 - Reportedly, another turbine was also due for maintenance in 2022
but could not be sent from Russia overseas.
Gazprom announced it was reducing the flow through Nord Stream to 67 mmcm/das one more turbine was taken offline, leaving only two operational turbines.
15 June 2022 - EU signs gas deal with Israel, Egypt in bid to ditch Russia
16 June 2022 - Russian gas flows to Europe fall, hindering bid to refill stores
European benchmark natural gas prices increased by around 30% after Gazprom reduced Nord Stream 1's gas supply to Germany to 40% of the pipeline's capacity. Russia warned that usage of the pipeline could be completely suspended because of problems with the repairment.
18 June 2022 - Merkel defends Nord Stream 2 decision
Former German Chancellor Angela Merkel has defended her decisions to build the Nord Stream 2 gas pipeline in the Baltic Sea. "I didn't believe in change through trade, but in connection through trade, with the second largest nuclear power in the world," Merkel told the editorial network Germany.
But it wasn't an easy decision. "The thesis at the time was that once Nord Stream 2 is operational, Putin will stop supplying gas through Ukraine or even attack it." The West ensured that gas was still routed through Ukraine and that they continued to receive transit fees.
Merkel pointed out that Russia then attacked Ukraine on February 24, when gas was not yet flowing through Nord Stream 2. "In this sense, gas was not a weapon," Merkel said.
Liquid gas was too expensive for the German economy
Merkel also justified the procedure at the time with economic considerations. "At the time, the German economy opted for pipeline gas transport from Russia because it was economically cheaper than liquid gas from Saudi Arabia, Qatar and the United Arab Emirates and later also from the USA," she explained.
They were willing to use taxpayers' money to support the construction of two terminals for liquefied natural gas (LNG) in Germany. "But until the last day of my tenure, no company built an LNG terminal in Germany because there was no importer who would have booked long-term capacities in advance because of the high price."
23 June 2022 - Exclusive: G7 likely to discuss Russian turbine, but may not find solution - Canada minister
8 July 2022 - Canada caught between allies as Germany presses for return of Russian turbine
Siemens Energy says sanctions still stand
There were reports from Berlin on Friday that Canada had decided already to accede to Germany's request.
CBC News asked a spokesperson for Siemens Energy Canada about those reports. "That's the first I've heard of it," said Ann Adair.
"No change," she added. "We continue to stick to the sanctions."
Adair also said that merely delivering the turbine to Germany rather than to Gazprom would not be enough to get around the sanctions. She said Siemens would expect to see the matter dealt with through a formal sanctions exemption, justified on humanitarian grounds by Germany's energy needs.
Federal Natural Resources Minister Jonathan Wilkinson said Friday that "it's not simple and we have not made a decision, but we certainly are talking with our friends, Ukraine and Germany."
8 July 2022 - After maintenance work: Canada wants to return Nord Stream 1 turbine
According to information from Reuters from government circles, the turbine will not be delivered directly to the Russian energy company Gazprom, but first to Germany. The background is that this makes it easier for the Canadian government to decide on extradition. The government in Ottawa feared violating Western sanctions imposed on Russia for attacking Ukraine.Scholz suspects political motives behind the throttled gas supplies.
Russia wants to restart energy supplies through Nord Stream 1 if its repaired gas turbine returns from Canada. "If the turbine comes after the repair, then that will allow for an increase in volume," Kremlin spokesman Dmitry Peskov said, according to the Interfax agency. "The only question is why it wasn't done that way." Peskov once again denied that Russia was using its gas as a means of exerting political pressure.We completely reject any hints or direct reports that the Russian side is using gas or oil as a weapon for political pressure said Dmitry Peskov, Kremlin spokesman.
Russia is fulfilling all obligations under the treaties. "And Russia is most importantly able to ensure Europe's full energy security."
The throttling also caused Germany's largest importer of Russian natural gas, Uniper , to experience turbulence and called for state aid. The problems in the gas market could get worse.11 July - 21 July 2022 - Nordstream yearly checkup/maintenance works
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 - 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.
[M: another explanation here: The company behind the Nord Stream 2 Baltic gas pipeline, which has not been put into operation, has scored a victory at the European Court of Justice. On Tuesday, the ECJ overturned a 2020 ruling by the European Union’s lower court that Nord Stream 2 AG was not allowed to challenge EU rules requiring the unbundling of production and distribution. The decision was not valid, the court said.]
12 July 2022 - EU top court backs operator of shelved Nord Stream 2 pipeline
The operator of Nord Stream 2, a pipeline designed to double Russia's gas exports to Germany, won an appeal in the EU's top court on Tuesday after challenging European Union rules that require separate companies to build, operate and own pipelines.
15 July 2022 - Testing time for Western powers as veil of uncertainty falls over Nord Stream gas deliveries
Scheduled return to Russia of a Nord Stream turbine underlines difficulties Western alliance faces in building unity against the Kremlin16 July 2022 - Russia's Gazprom says no sign of Nord Steam 1 turbineRussian energy giant Gazprom says it has asked German engineering firm Siemens for the return of a turbine that was being fixed in Canada. There are fears state-owned Gazprom could use the opportunity to cut off gas.'"On July 15, Gazprom submitted an official request to Siemens to obtain the documents... to allow the export of the gas turbine engine of the Portovaya station, a critical facility for the Nord Stream gas pipeline," the firm said in a statement.
"Gazprom is counting on the Siemens Group to unconditionally fulfill its obligations with regard to servicing gas turbine engines on which depend the reliable operation of the Nord Stream pipeline and natural gas supply to European consumers," the company said on Saturday.
20 June 2022 - Dutch join Germany, Austria, in reverting to coal
Dutch climate and energy minister Rob Jetten announced that the Netherlands would remove all restrictions on the operation of coal-fired power stations until at least 2024 in response to Russia's refusal to export natural gas to the country.
20 July 2022 - EU lacking Russian gas? It should then launch Nord Stream 2, Putin says
Russian gas supplies to Europe could increase if Nord Stream 2 is finally authorised to operate, Putin told reporters during his visit in Iran, according to a Kremlin transcript of the conversation in Russian language.
Germany's decision to power up its coal power plants came after Gazprom cut deliveries to Germany via the Nord Stream gas pipeline last week.
The move, presented by Gazprom as a technical issue, has been criticised as "political" by Berlin.
11 July 2022 - Nord Stream yearly maintenance
18 July 2022 - Gazprom Claims Force Majeure in Its Halt of Gas Deliveries to Europe
On Monday, Uniper SE, Germany’s biggest buyer of Russian gas, said it had received a letter from Gazprom that claims force majeure, a legal declaration that exempts the company from fulfilling contractual obligations because of circumstances outside its control. The notice was retroactive for past and current shortfalls in gas deliveries, the company said.“We consider this as unjustified and have formally rejected the force majeure claim,” Uniper said in a written statement.
...14 June 2022 when Gazprom announced it was reducing the flow from 167 mmcm/d to 100 mmcm/d and on 16 June further down to 67 mmcm/d, justifying its actions by technical problems at Portovaya......Gazprom’s announcement, resulting in Nord Stream flows dropping by more than half in just a few days, sent shockwaves through the European gas market given that Nord Stream running at full capacity was expected to help the EU meet its gas storage filling targets and avert gas rationing in winter 2022/23...
As Gazprom has not transferred displaced flows from Nord Stream to Ukraine (or any other) route – on which some capacity is available under 2019 transit agreement (although not the amount sufficient for full compensation) – and several European buyers have reported their flows being below nominations, it gave rise to renewed accusations of Russia using its ‘gas weapon’ against Europe."According to Reuters, on the same day as the turbine had reportedly left Canada – 14 July – Gazprom declared force majeure on its supplies, backdated to 14 June
Gazprom may have decided to declare FM to protect its legal position (see Legal Analysis) while at the same time putting pressure on the West to create a sanctions-proof repair and maintenance process and prevent the Canadian permit from being revoked.
The legal structure surrounding the Portovaya CS and Nord Stream is quite complex. Portovaya CS is managed and operated by Gazprom. Nord Stream - the transporter – is a separate entity; Gazprom Export is probably the shipper on Nord Stream and also the seller of gas to European buyers.
It is important to note that an FM event does not mean that there will be no flows on the pipeline, only that the flows are lower than the capacity booked by shippers. Effectively it means “we can’t meet your nomination but will deliver as much as is technically feasible”.
4 August 2022 - Deadlock over Nord Stream turbine as Russia says only one workingIt added three other turbines also needed major overhauls, and only one of six main gas turbines was currently working at the Nord Stream 1 pipeline, excluding an emergency spare. That means it can pump no more than 33 million cubic meters of gas per day12 August 2022 - Russia reiterates demand for Nord Stream gas turbine sanctions assurances
Russia has again demanded official confirmation that turbines used to flow gas in the Nord Stream pipeline to Germany would not fall foul of EU, Canadian, or UK sanctions.In a statement Aug. 11, the Russian embassy in Germany said that, until state-controlled Gazprom received the necessary documentation, it could not take delivery of repaired turbines from Siemens Energy or send other units for repair.
Nord Stream is currently running at just 20% of capacity, with only one turbine operational capping flows at 33 million cu m/d.
One other repaired turbine -- turbine 073 -- has been returned from Canada after maintenance work and a sanctions waiver approved by Ottawa, but the turbine remains in a Siemens facility in Mulheim, Germany.
"As for the turbine repaired in Canada and currently located in Mulheim, its delivery to Germany does not comply with the terms of the contract," the embassy said.
"Russia needs official confirmation that this and other turbines, which require routine maintenance and repair, will not fall under the sanctions of the EU, Canada and the UK," it said.
"If the delivery was carried out from Canada directly to Russia, as it was originally assumed, then we would not have to assess the impact of EU sanctions and take into account the possible risks associated with the blocking of the turbine in an EU country," he said.
He added that, since the contract supplier was a UK-based Siemens unit, Industrial Turbine Company Ltd, then the requirements of UK law also apply to it, including possible sanctions restrictions..
[M: UK-based Siemens unit]
17 August 2022 - Germany’s Uniper on the ‘brink of insolvency’ after €12bn loss
German utility Uniper reported a €12.3bn first-half loss, saying it had become a “pawn” in the Ukraine conflict and had been pushed to the “brink of insolvency” by a huge drop in Russian gas deliveries.
The loss by Europe’s biggest importer of Russian gas is one of the largest by a German company, eclipsing Bayer’s €10.5bn loss in 2020.
Uniper chief executive Klaus-Dieter Maubach warned on Wednesday that Europe faced a grim energy outlook this winter, saying the gas supply crisis made it “almost impossible” to predict the group’s performance in the second half of the year.
“We do assume that Gazprom, if it wanted to, could considerably increase its gas deliveries through Nord Stream 1,” he said, adding that gas prices had gone haywire because of “concerns about the reliability of energy supply”.
20 August 2022 - Gazprom to halt Nord Stream gas for 3-day maintenance.
Gas flows to Europe to be disrupted starting August 31.
[M: Did turbines and papers finally arrive?]
1 Sept 2022 - Gazprom CEO Says 'Sanctions confusion' Means Siemens Cannot Service Nord Stream 1
"Our opponents have issued so many sanction documents that they created a situation, which could be called sanctions confusion," Miller was quoted as saying by Interfax."And today Siemens has practically no opportunity to provide regular major maintenance of our gas-pumping equipment. Siemens simply has nowhere to carry out this work."Siemens Energy, which normally services the turbines, said earlier on Wednesday it was not involved in the maintenance work being carried out by Gazprom at the compressor station.In response to Miller's comments, Siemens Energy said it "cannot confirm these statements" and that maintenance is "explicitly excluded" from sanctions."Our technicians are ready to assist our customers with maintenance work if requested and ordered," Siemens Energy added.The latest maintenance has halted gas flows through Nord Stream 1 from Russia to Germany until Sept. 3.5 September 2022 - Russia switches off Europe’s main gas pipeline until sanctions are lifted
Russia’s gas supplies to Europe via the Nord Stream 1 pipeline will not resume in full until the “collective west” lifts sanctions against Moscow over its invasion of Ukraine, the Kremlin has said.Josep Borrell, the EU’s chief diplomat, on Monday acknowledged that certain political factions in the bloc wanted the EU to drop its support for Ukraine, push Kyiv into a ceasefire and abandon sanctions against Russia to ease economic pressure on European countries. He said those views were “not representative” of the position adopted by member states.
29 Sept 2022 - Russia Says Sanctions Prevent It From Maintaining Gas Pipeline To Turkey, Balkans
The Russian operator of a pipeline that supplies Turkey and the Balkans with natural gas said it would suspend some maintenance and repair work, citing European Union sanctions, a move that threatens to deepen Europe’s energy crisis.
Oleg Aksyutin , the director of South Stream Transport B.V., sent a note earlier this month to division managers informing them that Netherland’s import and export authority would be revoking its export license as of September 17.
South Stream Transport is the Dutch-unit of the Kremlin-controlled natural gas giant, Gazprom, which manages the TurkStream pipeline running under the Black Sea from Russia to Turkey and on to the Balkans and Central Europe.
In the letter, a copy of which was obtained by RFE/RL, Aksyutin ordered them to “suspend the execution of all contracts related to the technical support of the gas pipeline, including design, manufacture, assembly, testing, repair, maintenance and training.”
He said gas exports should continue but only with emergency support in order to prevent damage to the environment.
30 Sept 2022 - TurkStream natural gas pipeline operator:
Our export license has been revoked, Turkey and Europe will not be affected
The Russian company, which operates the TurkStream natural gas pipeline, which carries Russian natural gas to eastern and southern European countries via the Black Sea and Turkey, announced that its export license was canceled by the Dutch government.
South Stream Transport BV said it will continue to ship gas and has applied for license renewal.
31 August 2022 - Nord Stream works on 20% due to sanctions on Russia - Miller
Western opponents have fallen into their own sanctions trap, Gazprom CEO Miller said.
"Our opponents have already issued such a large number of sanctions documents that they have created a situation [where] they themselves got entangled in these sanctions and fell into their own sanctions trap," Miller asserted.
Miller previously warned that gas prices in Europe could exceed $4,000 per 1,000 cubic meters during the second half of 2022.1 Sept 2022 - Nord Stream is loaded by 20% due to anti-Russian sanctions
2 Sept 2022 - Russia's Medvedev threatens 'no gas' for Europe if Brussels adopts price cap
2 Sept 2022 - G7 countries agree to cap the price of Russian oil
The West’s biggest economies on Friday agreed to impose a price cap on Russian oil in an attempt to reduce Moscow’s ability to fund its war in Ukraine without further stoking global inflation.
“We will simply not supply oil and petroleum products to such companies or states that impose restrictions, as we will not work non-competitively” Deputy Prime Minister Alexander Novak told reporters Thursday, according to state news agency TASS.
“The price cap is specifically designed to reduce Russian revenues and Russia’s ability to fund its war of aggression whilst limiting the impact of Russia ́s war on global energy prices, particularly for low and middle-income countries,” the G7 finance ministers said.
Novak has called the proposals to impose restrictions “completely absurd” and said they could destroy the global oil market, TASS reported.
“Such attempts will only destabilize the oil industry, the oil market,” he said.
Sept 3 2022 - Russia kept one of its main gas supply routes to Europe shut
... on Saturday, stoking fears of winter fuel shortages and spotlighting differences between Gazpromand Germany's Siemens Energy over repair work on the pipeline.
3 Sept 2022 - Russia cuts off gas exports to Europe via Nord Stream indefinitely
On Friday, Russian state energy giant Gazprom said it would not resume flows through the pipeline on Saturday as planned because it had detected an oil leak at its Portovaya compressor station. The pipeline has been shut since Wednesday for maintenance.
“Until the issues on the operation of the equipment are resolved, gas supplies to the Nord Stream gas pipeline have been completely stopped,” Gazprom said in a statement.
The Nord Stream 1 pipeline is a key artery carrying Russia’s vast gas supplies to Europe, accounting for about 35% of Europe’s total Russian gas imports last year.
Since June, Gazprom has slashed flows through Nord Stream 1 to just 20% of its capacity, citing maintenance issues and a dispute over a missing turbine caught up in Western export sanctions.
Engie said the shutoff was the result of “a disagreement between the parties on the application of contracts.”
[M: Seems like INCOTERMS changed as turbines travelled through Germany]
5 Sept 2022 - Gas flows to Europe won’t resume until sanctions lifted: Russia
The Kremlin says Western sanctions caused the decision to stop gas flows down the Nord Stream pipeline...
6 Sept 2022 - Gazprom says Nord Stream 1 resumption depends on Siemens Energy.
Russia's biggest natural gas pipeline to Europe will not resume pumping until Siemens Energy repairs faulty equipment, Gazprom’s Deputy Chief Executive Vitaly Markelov told Reuters on Tuesday.
7 Sept 2022 - Putin Says Nord Stream Can Reopen If Turbines Available.
7 Sept 2022 - Putin says Russia to stop supplying energy if Western price caps imposed
7 Sept 2022 - Putin says West's sanctions fever wrecks European lives
8 Sept 2022 - Gazprom unit granted Nord Stream 2 debt restructuring moratorium extension
Nord Stream 2 AG will not go bankrupt at least until 10th of January 2023 thanks to another decision from Zug court.
16 Sept 2022 - Putin tells Europe: if you want gas then open Nord Stream 2
VII. Was this a trigger to take Nordstream out as legal path failed?
10 Sept 2022 - Nord Stream 2 gas link operator wins further stay of bankruptcy: court
On May 11, Switzerland-based Nord Stream 2 AG was awarded a provisional stay of bankruptcy until Sept. 10 2022, according to a notice in the Swiss Official Gazette of Commerce.
In a new notice dated Sept. 8, a court in Zug awarded a four-month extension of the stay of bankruptcy from Sept. 10 until Jan. 10, 2023.
There have been calls from within Germany in recent weeks to allow Nord Stream 2 to begin operations after flows through the first Nord Stream system were curtailed and then halted altogether, with gas prices having surged to new records as a result.
12 Sept 2022 - The Legality of Russia’s Indefinite Suspension of NordStream 1 Gas Pipeline Under International LawGeneral Remarks on the Legality of the Suspension of the Nord Stream 1 Gas PipelineUnilateral sanctions, irrespective of whether they are tacit or explicit, are lawful under international law if they constitute acts of retorsion or countermeasures. Accordingly, to evaluate the legality of the suspension of the Nord Stream 1 gas pipeline, it is necessary to question whether Russia’s suspension constitutes an act of retorsion or countermeasure.Retorsions are ab initio lawful, albeit unfriendly, acts, such as lawful embargoes and the expulsion of diplomats, and they can be imposed to achieve both legal and political objectives of sanctions senders....Russia can impose retorsions against the G7 price cap plan and/or more broadly EU sanctions which have been imposed against Russia since February 2022...Conclusion
This post first showed that Russia’s suspension of Nord Stream 1 gas pipeline is in fact a unilateral sanction imposed by Russia against the EU in reaction to the G7 price cap plan and/or more broadly EU sanctions which have been imposed against Russia since February 2022.Secondly, it discussed whether this suspension could be considered retorsions or countermeasures under international law.
Lastly, if the indefinite nature of the suspension is revealed, and its legality was evaluated in terms of the termination process requirements within the concepts of retorsions and countermeasures...
However, since there is no binding multilateral rule regulating gas trade on Russia regarding the suspension of gas flow, Russia prima facie does not violate its international obligations owed to the EU by its suspension decision (it should be highlighted that other international obligations beyond gas trading were not discussed in this post)...
Hence, its act may constitute an act of retorsion. Unlike countermeasures, since retorsions do not involve requirements regarding the termination process of unilateral sanctions, Russia is free to indefinitely suspend Nord Stream 1 gas pipeline under current international law so long as the suspension continues to be an act of retorsion.
Consequently, it is necessary to conduct further research and regular review concerning whether Russia’s suspension is consistent with the current and future international obligations of Russia towards the EU.
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.
IX. Cutting off the toxic power and pipelines from authoritarian regimes?
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 - Thousands take to streets in north Germany demanding launch of Nord Stream 2
26 Sept 2022 - Nordstream pipelines are attacked.
X. Boomerang sanctions strike back
12 Oct 2022 - Russia claims attack on NordStream is "act of state terrorism" .
"The recent terrorist attack on the Nord Stream 1 and 2 natural gas pipelines was aimed at undermining the energy security of the entire continent", Russian President Vladimir Putin said on Wednesday.18 Oct 2022 - Moscow Plans to Shift EU Export Routes to Turkey
Gazprom wants to rearrange its natural gas pipeline transit routes to Europe through Turkey after the two Nord Stream pipelines were damaged...
...If the plans materialize, it could bolster Turkey’s ambitions to become a significant regional gas hub.
Russian President Vladimir Putin floated the idea to expand the capacity of the Turk Stream offshore gas pipeline to Turkey on Oct. 12 with a view to redirect volumes to Europe from the damaged Nord Stream pipelines. Turkish leader Recep Tayyip Erdogan then instructed the government to immediately begin technical studies.Gazprom has said it would no longer build pipeline infrastructure inside the EU following the cancellation of the South Stream project in 2014 due to opposition from Bulgaria and Brussels. Turk Stream, the project that eventually replaced South Stream, did not involve any Russia-financed capacity construction in the EU, only in non-EU Serbia. Gazprom floated the idea of selling their gas on the Russian border instead of directly in the EU through a trading department set up in St. Petersburg in 2018. It also launched its Electronic Sales Platform where it sold spot gas to European players from various interconnection points.
Gazprom CEO Alexei Miller said last week during the Russian Energy Week conference in Moscow that the new transit through Turkey could fully replace the lost Nord Stream capacity, potentially alluding that Gazprom intends to increase Turk Stream capacity even further than the planned 63 Bcm/yr.
Putin said Europe must make it clear that it needs the gas from an expanded Turk Stream before Moscow starts investments.
The Kremlin has already threatened to impose blocking sanctions on Ukrainian gas company Naftogaz, which would mean a stop to Ukrainian transit volumes.
14 Nov 2022 - Poland says to take over Gazprom's Polish assets
Poland will take over Gazprom's Polish assets, a minister said on Monday, adding the move concerned the Russian company's 48% stake in Europolgaz, which owns the Polish section of the Yamal gas pipeline.The compulsory administration will ensure security of the critical infrastructure used for gas transit, Polish Development Minister Waldemar Buda, said in an emailed statement.
17 Nov 2022 - Gazprom Export says court ruled Finland's Gasum must pay more than 300 million euros
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.
30 Nov 2022 - Germany's Uniper takes Gazprom to court over halted gas supplies
German gas giant Uniper said Wednesday it was taking Gazprom to an international tribunal over the Russian company's failure to deliver gas, saying it has so far cost them €11.6 billion.
The German company said it had begun legal action against Gazprom at a tribunal in Stockholm, claiming damages over gas that had not been delivered since June."It is about gas volumes that were contractually agreed with Gazprom but not delivered and for which we had to procure replacements at extremely high market prices and still have to do so," CEO Klaus-Dieter Maubach said in a statement.
10 Dec 2022 - Shareholders of gas group Uniper approve German bailout
Shareholders in Uniper on Monday approved a state bailout that has so far cost the German government more than 50 billion euros ($53 billion), paving the way for a de facto nationalisation of the struggling gas giant.
As part of the bailout, the German government will end up owning just below 99% of Uniper, Germany's largest gas trader, following two share issues. Germany's Finance Ministry will be responsible for the stake.
22 Feb 2023 - ENGIE takes Gazprom to court over lost gas supply
Gazprom suspended gas supply to Engie at the start of September, claiming that it had failed to pay in full for deliveries over the summer.
French energy utility Engie has launched an arbitration case against Gazprom over the Russian company's failure to deliver contractual gas supplies
XI. When sanctions are not enough a price cap is implemented
19 Dec 2022 - The European Energy ministers agreed on a price cap for natural gas at €180 per megawatt-hour
2 Feb 2023 - Equinor: sanctions prevented survey of damaged Nord Stream pipeline
16 March 2023 - Gazprom in arbitration proceedings with ENI, Engie, RWE, PGNIG, Gasum, Naftogaz - report
CONCLUSION/SUMMARY:
It is possible that the boomerang effect of sanctions on European economy was already well known and understood?
It looks like sanctions started to effect Nordstream 1 operations which Germany considered to be important part of their energy security.
The Nordstream AG has not been directly sanctioned but the indirect effect on them caused a real damage.
It is possible that major economical power Germany wanted a way out while the UK wanted to keep the pressure on Russia?
QUESTION:
Is it a good idea to impose price cap after sanctions clearly backfired?
OTHER RELATED POSTS:
The € 1.5 Trillion Margin call
No comments:
Post a Comment