Nord Stream 2 divides the West. OSW Commentary NUMBER 276 | 28.06.2018

Bajczuk, Rafał and Kardaś, Szymon (2018) Nord Stream 2 divides the West. OSW Commentary NUMBER 276 | 28.06.2018. [Policy Paper]

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Abstract

In recent weeks the US has stepped up its campaign against the Nord Stream 2 project. Washington is putting pressure on Berlin to withdraw its support for the project, and is threatening to use increasingly powerful measures, including sanctions on European companies involved in the gas pipeline’s implementation. The growing dispute between the US and Germany over Nord Stream 2 has become an element of the broader controversy surrounding the project in the EU and is leading to deeper divisions between the member states. It has brought to the fore the differences in approaches to gas cooperation with Russia as well as approaches to the development of Russia’s strategic gas pipeline projects. While Germany, but also Austria, the Netherlands and a number of other countries, limit their approach to commercial issues, Poland, the Baltic States, Denmark and the US also see it as having security implications which do not only relate to energy. The conflict over Nord Stream 2 is also part of the game concerning the future shape of the gas market in Europe, and the roles played by individual external suppliers (mainly Russia, but also to an increasing extent the US) and companies such as Gazprom and its European partners. The Nord Stream 2 case has become a major challenge of the EU’s cohesion and its relations with the US and Russia. Gameplay on Nord Stream 2 brings short term political benefits to Russia. The project has not only caused a rift between the EU member states, it has also become a source of increased friction in transatlantic relations. The actions taken by Washington and Berlin with regard to Nord Stream 2 will have the greatest impact on its future. Although Berlin has changed its rhetoric and Chancellor Merkel has acknowledged that project has a political dimension in addition to the commercial one, Germany is unwavering in its support for NS2, trying to limit its negative consequences to problems regarding Ukrainian transit. Thus Berlin does not refer to the strategic concerns of the Central European and Scandinavian countries, the European Commission (EC) and the US which are not related directly to Ukraine.

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