Germany Halts Nord Stream 2 In Major Sign Impending Russia Sanctions Will Be “Tough”

At a moment the United States and Europe are busy mulling over what sanctions to impose on Moscow for Putin’s independence recognition for Ukraine’s separatist republics – one the one hand wanting Russia to feel the pain as a warning against moving further into Ukraine (beyond what the Kremlin is dubbing “peacekeeping” troops in Donetsk and Luhansk, which moved into the republics overnight), and on the other wanting to avoid serious enough economic measures that would almost assure immediate escalation – Germany on Tuesday has announced it has halted the certification process for the Nord Stream 2 pipeline.

As European Union leaders prepare to sanction Moscow, Bloomberg quoted German Chancellor Olaf Scholz as saying the Nord Stream 2 pipeline certification can’t happen right now. He explained to reporters that he contacted the Economic Ministry to withdraw a report on the security of supply required for the certification process of pipeline to move forward. Without it, NS2 “cannot go into operation” – he told reporters.

In essence as Bloomberg put it, the controversial Russia-to-Germany natural gas pipeline appears to be the first major Russian project to fall victim to Putin’s independence declaration for the breakaway Ukraine republics. 

“That sounds technical, but it’s the necessary administrative step so that no certification of the pipeline can happen right now,” Scholz said of the move, adding that “without the certification, Nord Stream 2 cannot go into operation.” 

Concerning the first wave of sanctions reportedly now being prepared targeting Russia, Scholz said, “I expect a very strong and focused package.”

European natural gas jumped 13% today – hours after Russian troops began entering Donetsk and Luhansk. Brent prices nearing $100 a barrel, and German power and coal prices advanced. This all comes as Europe is dealing with one of the worst energy crisis in years. 

Wow! Germany is killing the new $10bn Nord Stream 2 gas pipeline from Russia.

That’s a huge step after refusing to be drawn on it in public for months. It’ll have major consequences for European energy security and suggests the western sanctions against Moscow will be tough. https://t.co/hQknCtBEpG

— max seddon (@maxseddon) February 22, 2022

The Russia-to-Germany gas pipeline was completed on Sept. 11 and has been ready to supply Europe for months. Even before this week’s geopolitical turmoil in Ukraine, Germany’s federal network agency, Bundesnetzagentur, halted the pipeline’s certification process in mid-November.

By December, Bundesnetzagentur President Jochen Homann said, “a decision won’t be made in the first half of 2022.” The latest developments to halt the certification process suggest Nord Stream 2 pipeline won’t supply energy crisis-stricken Europe with natural gas anytime soon.