Pipeline wars: US targets Russian pipeline as Mediterranean tensions grow

At his annual news conference Russian President Vladimir Putin said that he wants to maintain gas shipments to Europe through Ukraine as well as Russia prepares for Nord Stream 2.

By SETH J. FRANTZMAN
German Chancellor Angela Merkel holds a joint news conference with Dutch Prime Minister Mark Rutte (not pictured) at the Chancellery in Berlin, Germany, October 2, 2019 (photo credit: MICHELE TANTUSSI/REUTERS)
German Chancellor Angela Merkel holds a joint news conference with Dutch Prime Minister Mark Rutte (not pictured) at the Chancellery in Berlin, Germany, October 2, 2019
(photo credit: MICHELE TANTUSSI/REUTERS)
Germany lashed out at new US sanctions on a Russian pipeline called Nord Stream 2 which is being built from Russia to Germany. US President Donald Trump signed the National Defense Authorization Act (NDAA) which triggers sanctions against Nord Stream 2.
“Germany can't have more than 50 thousand GREAT U.S. soldiers on their soil and take Russian gas at the same time. This is another example of how our ALLIES were fooling us for years. This time is OVER. With me. They need to choose which side they belong to!! #NordStream2,” US President Donald Trump tweeted.
According to reports the pipeline that runs 1,200 km from Ust Luga near Saint Petersburg will have a capacity of 55 billion cubic meters of gas per year. Washington’s attack on the pipeline project is part of a larger group of disputes about gas that link the Baltic Sea to the Mediterranean and involve Russia, Turkey and other countries.
Russia’s Gazprom is excited about the almost-complete Nord Stream 2, that builds on success from the first Nord Stream pipeline which travels a similar route. Russia says that this will ensure reliable gas exports to Europe as Europe’s domestic gas production declines. It’s not all smooth sailing. Russia’s crude exports have fallen to 2.8 million tonnes for April-June due to contaminated oil infrastructure. That affects the Druzhba pipeline from Belarus, according to Reuters. Russia has another pipeline company at the same area called Transneft.
Nord Stream 2 is a big project, valued at some $11 billion. But the US sees it as a strategic issue, meaning Russia will have more control over Europe. Europe could be a hostage of Russia now, according to US lawmakers.
But European countries want to work with Russia. The Atlantic Sentinel writes that the US shouldn’t punish Europe, but rather help it become less dependent on Russia. The European Union and Europe in general have a population of almost half a billion and among the most powerful economies in the world.
At his annual news conference Russian President Vladimir Putin said that he wants to maintain gas shipments to Europe through Ukraine as well as Russia prepares for Nord Stream 2 to become operational. Trump signed the NDAA at Joint Base Andrews on December 20. Overall the NDAA is worth $783 billion.
Already, according to Reuters, Allseas Group has suspended work on the pipeline in the wake of the US decision. The Trump administration prefers sanctions as a method of foreign policy, using them against Iran, Venezuela, militias and others that the administration opposes. It has a trade war with China and Trump is pushing an America first economic policy.
Russia mocked the US decision with Foreign Ministry Spokeswoman Maria Zakharova says that the US was in debt and that it was odd for it to forbid others from developing. US Senators Ted Cruz and Ron Johnson have warned Allseas about its work and now they seem to have gotten it to wind down work. The company should show good faith efforts to wind down work over the next month. German Chancellor Angela Merkel said she is against extraterritorial sanctions.
But Merkel says Germany would retaliate against the Americans. Historically Germany has been at odds with Russia. However, Germany’s foreign ministry seems to be channeling the historic Austrian diplomat Prince Klemens von Metternich who favored working with Russia, in condemning the US. Foreign Minister Heiko Maas told the US to stop interfering in the decisions taken in Europe. Former German Chancellor Gerhard Schroder supported Nord Stream and according to the website Nord-Stream.com he sits on their shareholders committee.
While the German-Russia gas alliance is moving ahead, despite US objections, another gas dispute further south also threatens a crisis. Russia has built the TurkStream to Turkey as part of a strategic partnership with Ankara. Gazprom also said that parts of the TurkStream pipeline are full and can begin supplying gas by the end of 2019, according to reports at Ahval earlier this year.
Bulgaria is supposed to construct its section by 2020 and Serbia has constructed its section. However, Putin said Bulgaria was delaying its implementation in early December. Putin met with Serbia’s President Aleksander Vucic as part of this discussion. TurkStream goes under the Black Sea to Turkey and then to Eastern Europe, including Hungary and Slovakia. It is supposed to provide 15.75 billion cubic meters of gas to Turkey and has a capacity of 31.5 billion.
Turkey is now in a dispute with Greece and Cyprus after laying claim to a large economic area of the Mediterranean in a deal with Libya. Turkey also wants to position itself to be linked to Azerbaijan’s TANAP pipeline. It is all a “game-changer” for Turkey according to Anadolu. That means that a larger energy competition may be emerging at sea, with Greece, Cyprus, Israel and Egypt tending to oppose Turkey’s increasing posturing.
It is not clear if an East Med pipeline that could connect Israel to Europe will emerge, but if it does both Russia and Turkey are involved as well. From the Baltic to the Mediterranean gas politics is linked to economic, political and military strategy. The recent US sanctions only underpin that.