Nord Stream 2: How to make the best of a bad idea – Atlantic Council

An output filtration facility of a gas treatment unit at the Slavyanskaya compressor station in Russia's Leningrad region, the starting point of the Nord Stream 2 natural gas pipeline. Photo via Peter Kovalev/TASS.

Even after the United States and Germany released a joint statement on July 21 intended to ease widespread concerns over the Nord Stream 2 natural gas pipeline, the project continues attracting opposition in Washington and across Europeand for understandable reasons.

For years, Russian President Vladimir Putin has used natural gas as a political weapon, especially against Ukraine, and Nord Stream 2 appears aimed at extending that leverage. At the St. Petersburg International Economic Forum in June, Putin himself threatened to cut gas transit through Ukraine if Kyiv failed to show sufficient good will. Meanwhile, Gazprom, the pipelines owner, is curtailing gas deliveries to Europea move thats driving up pricesand hinting that the supply shortage will ease only when Nord Stream 2 is fully operational.

No wonder Ukrainians, Poles, many Germans, most of the European Parliament, many officials across the European Union (EU), and a strong majority of an oft-divided US Congress remain staunch in opposition to the project. Thats why Germany and the United States must work hard and fast to fulfill the pledges they outlined in their joint statement to push back against Russias weaponization of energy. Theyd better: Germany and the United States now own the consequences if the project encourages Putin to further bully Ukraine or other European countries through energy or other means.

Political documents like the joint statement carry both risks and potential. At their worst, they provide cover for inaction. But at their best, they can mobilize governments to fix problems. The document was a big step for Germany, whose president earlier this year still maintained the pipeline was a strategic bridge to Moscow. If Berlin and Washington mean what theyve said, their statement could serve as a platform to address, at least in part, the risks of Nord Stream 2 and thwart the Putin victory many critics fear.

Heres what they should do, based on the joint statements provisions:

The Biden administrations appointment of Amos Hochstein as a State Department senior adviser for energy security on August 9 is a welcome development. Hochstein served in a similar role during in the Obama administration, knows the issues and players well, and has long been an opponent of Nord Stream 2. He is the right person to oversee the implementation of the joint statements best provisions.

Both Hochstein and Germanys forthcoming special envoy must act quickly.We recommendestablishing a mechanism that includes the special envoys andtheir counterparts from other governments with equity in the issue,as well asworking with the US-EU Energy Council, to monitor Russias actions. This mechanism should recommend responses, including sanctions and restrictions on Nord Stream 2,to any objectionable Russianenergy policy.

Neither self-executing nor legally binding, the joint statement nevertheless contains commitments that, if implemented, could hold Russia more accountable and protect Europes energy security. Putin and regime-dominated Russian media have greeted the recent progress on Nord Stream 2 with a smirkbut through cooperation and determination, the United States, Germany, and Europe, Ukraine included, can turn this around.

Daniel Fried is the Weiser Family distinguished fellow at the Atlantic Council. He was the coordinator for sanctions policy during the Obama administration, assistant secretary of State for Europe and Eurasia during the Bush administration, and senior director at the National Security Council for the Clinton and Bush administrations. He also served as ambassador to Poland during the Clinton administration. Follow him on Twitter @AmbDanFried.

Ambassador Richard Morningstar is the founding chairman of the Atlantic Councils Global Energy Center, former US ambassador to the European Union, and former US ambassador to the Republic of Azerbaijan.

Ambassador Andrs Simonyi is a nonresident senior fellow at the Atlantic Councils Global Energy Center and is a project director at George Washington University. He formerly served as the Hungarian ambassador to the United States.

Wed, Jul 21, 2021

How will the United States and Germany balance business needs with security? And what price will Kyiv be forced to pay? We drilled down with our experts for answers.

Fast ThinkingbyAtlantic Council

Fri, Jul 16, 2021

After six years of debate and controversy over Nord Stream 2, the pipeline is now close to physical completion. Gazprom now wants to ensure that it is not just completed, but that it also receives all EU regulatory clearances rapidly, so the pipeline can be brought online. However, issues regarding compliance with existing EU law, prospective legal challenges, and consequences of Russian geopolitical natural gas power plays may complicate that narrative.

EnergySourcebyAlan Riley

Tue, Apr 27, 2021

A completed Nord Stream 2 pipeline will have an impact on a number of issues, from national and energy security to geopolitical and governance considerations, all while the gas supply will hardly be impacted with costs already sunk. Does the pipeline make commercial sense?

Issue BriefbyAnders slund

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Nord Stream 2: How to make the best of a bad idea - Atlantic Council

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