Russia is likely to see it as a hostile move and it could fuel growing tensions with the West
Source - Daily Telegraph - 16/11/21
Germany on Tuesday suspended the certification process for the controversial Nord Stream 2 gas pipeline from Russia.
The German regulator said the suspension was “temporary” and it appeared to be a technical rather than a political decision.
But Russia is likely to see it as a hostile move and it could fuel growing tensions with the West.
Vladimir Putin has been pressuring Germany to approve Nord Stream 2, which will allow Russia to bypass existing pipelines through Ukraine.
Critics say the pipeline could undermine Ukraine because it currently gets transit fees from existing pipelines which run through the country.
Prime Minister Boris Johnson has opposed the development and said on Tuesday that maintaining "peace and stability" in Ukraine must be a priority.
The German regulator said it has suspended its approval process because Nord Stream 2 does not meet German and EU laws requiring pipeline operators to be separately owned from energy suppliers.
Nord Stream has chosen to address this by setting up a new subsidiary company in Germany to operate the pipeline.
The German regulator said it was suspending the process until the new company is set up so it can be evaluated.
The regulator said it would still be able to complete the certification process by its January deadline. But that is unlikely to satisfy Mr Putin, who has been pressing for the pipeline to be put into operation sooner.
Once the German regulator makes its decision, the pipeline will still have to be approved by the European Union.
The European Commission often does little more than rubber stamp national regulators' decisions, but it can veto them, and Nord Stream 2 is so controversial it is expected to attract more scrutiny.
The EU is likely to take particular interest in the question of the pipeline's ownership, and whether it is genuinely independent of the Russian gas companies.
The European Commission could take up to four months to reach its decision, after which the German regulator would have another two months to respond - meaning a final decision on Nord Stream 2 could take until July next year.
European and British wholesale gas prices have spiked in recent weeks amid heightened concerns over supplies from Russia and uncertainty around the timing of their arrival.
Boris Johnson: Europe must preserve peace in Ukraine
Prime Minister Boris Johnson reaffirmed British opposition to the pipeline at a meeting of his senior ministers on Tuesday, his spokesman said.
"He underlined the UK’s opposition to the Nord Stream 2 pipeline which would divert supplies from Ukraine and could have significant security implications for the region," he said.
"He also reiterated his concern about the ongoing situation on the Ukraine border and emphasised that the UK will continue to support the territorial integrity of Ukraine."
Last week Mr Johnson said that European nations must choose between “mainlining” Russian gas and defending peace in Ukraine.
“When we say that we support the sovereignty and integrity of Ukraine that is not because we want to be adversarial to Russia, or that we want in some way strategically to encircle or undermine that great country,” Mr Johnson said.
“We hope that our friends may recognise that a choice is shortly coming between mainlining ever more Russian hydrocarbons in giant new pipelines, and sticking up for Ukraine and championing the cause of peace and stability, let me put it that way.”
Earlier on Tuesday Defence Secretary Ben Wallace visited Ukraine to "reaffirm Britain's enduring support" for their sovereignty and territorial integrity.
German opposition celebrates
The German Green Party, which opposes the pipeline, embraced the suspension.
"The regulator is consistently implementing German and European law," said Sergey Lagodinsky, a German Green MEP.
“The principle of separating network operation and sales must be enforced. Attempts to circumvent this using letterbox companies do not do justice to this principle."
The Greens are one of three parties in talks to form a new coalition government in Germany. Annalena Baerbock, one of the Green leaders who is expected to become foreign minister, recently reiterated her opposition to putting the pipeline into operation.
Olaf Scholz, who is expected to become chancellor, has not commented. His centre-Left Social Democrats (SPD) have supported the pipeline in the past.
Ukraine backs Germany
The head of the Ukrainian energy firm Naftogaz said on Tuesday he welcomed the German energy regulator's decision.
Ukraine opposes Nord Stream 2, accusing Moscow of using energy as a weapon against Europe. Moscow denies this. Ukraine has successfully applied to be part of the consultation process to certify the pipeline.
"Good," Naftogaz head Yuriy Vitrenko told Reuters in a message when asked about the German regulator's move.
"This is an important point, which suggests that the German regulator shares our position that certification cannot only apply to the pipeline in Germany, but should apply to the entire pipeline from the territory of the Russian Federation to the territory of Germany."
Critics say the pipeline could undermine Ukraine because it currently gets transit fees from existing pipelines which run through the country and could be circumvented.
Nord Stream 2 said it had been notified by the regulator. "We are not in a position to comment on the details of the procedure, its possible duration and impacts on the timing of the start of the pipeline operations," it said in a statement.
The Kremlin was not immediately available to comment.
The intervention came as Russian troops continued to gather near Ukraine, prompting fears of an imminent invasion, and tensions over migration escalated at the Polish-Belarus border.
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