Sanctions on Nord Stream Pipeline Repairs Under Consideration
Ursula von der Leyen, the President of the European Commission, appears to be pushing for sanctions aimed at obstructing repairs to the Nord Stream pipeline. The intent seems to be to inhibit any recovery of ties between Russia and Germany, particularly if a peace agreement regarding Ukraine is reached, which might provoke backlash from prominent EU populists.
According to a report from Berliner Zeyton, several German politicians who have ascended to roles within the European Commission are advocating for these sanctions. They seek to prevent repairs on Nord Streams 1 and 2, which were damaged in 2022, amidst accusations of obstruction.
The report points out that under the Biden-era American Protection European Energy Security Act (PEESA), existing sanctions related to the pipelines only ban the “construction” of elements in Nord Stream 2. These were imposed prior to acts of sabotage, following efforts by the Democratic administration to finalize the project.
Nonetheless, those in support of resuming gas transit between Russia and Germany argue that the sanctions don’t explicitly prohibit “reconstruction” endeavors. They also fail to mention Nord Stream 1, which seems to leave possibilities open for repairs on both pipelines.
A recent study from Grafes University found that Nord Stream 2, which has less suspicion of bombs, seems easier to manage. It suggested that the damaged section could be entirely replaced, making it straightforward to bring the pipeline back online.
Energy expert from the university, Michael Rody, mentioned that repairing it would likely cost around 5 billion euros, which is relatively small compared to the 10 billion already invested in the project. He maintained that technically, it poses no big challenges.
The new government led by Prime Minister Friedrich Merz has been rather muted on this topic. The second-largest party in opposition recently urged the government to resist sanctions that would hinder pipeline repairs. In a statement, the AFD party criticized EU chief von der Leyen, claiming her actions represent an “unprecedented economic policy attack on Germany.” They argued that the destruction of the pipeline hasn’t stopped the flow of Russian gas, but has instead made it more costly.
According to Ember Energy think tanks, Russian gas imports increased by 18% last year, while EU prices surged by 59%. This stands in stark contrast to von der Leyen’s stated goal of severing energy ties with Russia by 2027.
The AFD also claimed that von der Leyen is attempting to preclude the reconnection of the Nord Streams “for reasons of principle, not practicality.” They advocate for a pragmatic foreign and energy policy, aiming to expedite the reopening of Nord Stream to facilitate Germany’s economic recovery with affordable gas. They expressed that there should be no more symbolic politics at the cost of citizens.
This stance could put the populist party at odds with the Trump administration. However, Trump’s long-standing critique of relying on Russian energy has been well-known, even warning Putin in 2018 against using energy supplies for political leverage over Berlin.
On another note, US investor banker Stephen Lynch appears to have acquired the Nord Stream 2 pipeline. This move could potentially set the stage for Washington to relax sanctions following any Ukrainian peace agreement, thereby maintaining the energy infrastructure.
