Russia-Ukraine War: German Economic Min says Nord Stream 2 can't be launched mid-term

Robert Habeck, Germany's Vice Chancellor and Federal Minister for Economic Affairs and Climate Action, stated that he does not see any possibilities for the Nord Stream 2 gas pipeline to be launched. The government of Germany has halted the certification process for the Nord Stream 2 gas pipeline project, according to German Chancellor Olaf Scholz, after Russia recognised DPR and LPR.

In an interview with ZDF TV on February 24, he said, "I do not believe that Nord Stream 2 can be launched in the medium and short term. But, of course, political efforts should be aimed at de-escalating the situation."

At the same time, Habeck did not rule out the possibility that, in the short term, market prices for gas and oil will rise as a result of the situation in Ukraine. In order to begin construction on the gas pipeline, Nord Stream 2 AG has to register as an independent transport operator. Due to organisational and legal concerns, the German Federal Network Agency ceased certification on November 16, 2021.

Scholz suspended approval process for Nord Stream 2 on Tuesday

Chancellor Olaf Scholz suspended the approval process for the Nord Stream 2 project on Tuesday in response to Putin's decision the day before to designate the two eastern Ukrainian areas of Luhansk and Donetsk "autonomous." In view of Europe's new security scenario, he also asked the Economy Ministry to re-examine Nord Stream 2.

The Nord Stream 2 pipeline, which was completed but never certified, would have increased Germany's dependency on Russian gas, which now accounts for almost 70% of total gas deliveries to the country. Scholz, like his predecessor, has been an outspoken backer of Nord Stream 2, arguing that the project is not motivated by politics.

On December 29, 2021, Russian President Vladimir Putin said that Russia and its partners have completed Nord Stream 2 and emphasised that considerable new volumes of Russian gas will begin to flow to Europe as soon as partners in Europe decide to start construction. Putin expressed optimism that the start of Nord Stream 2 would result in lower European gas costs.

At a ceremony in the Kremlin on February 21, Russian President Vladimir Putin signed decrees recognising the Donetsk and Lugansk People's Republics. Putin met with Denis Pushilin and Leonid Pasechnik, the leaders of the DPR and the LPR, and signed treaties of friendship, collaboration, and mutual help between Russia and both republics.

(With inputs from agencies)

Image: AP