The U.S. Considers Russia's New Gas Pipeline a Threat to Europe

The U.S. Secretary of State states that the new Russian pipeline to Europe, known as 'Nord Stream 2', poses a threat to the energy security of the European Union. Russia currently exports gas to the EU through three routes: Ukraine, 'Nord Stream 1', which connects directly to Germany via the sea, and finally through Belarus and the Baltic states. According to an official report from Gazprom, the company that holds the monopoly on Russian gas exports, the country increased its gas sales to Europe (including Turkey) by over 8% last year, reaching a historic record of 194 billion cubic meters, which accounts for 36% of total gas consumption in Europe. Russia plans to construct the new 'Nord Stream 2' pipeline parallel to 'Nord Stream 1', intending to stop or at least reduce gas sales to Europe via Ukraine within two years, raising widespread concerns in the West. In this context, Rex Tillerson, the U.S. Secretary of State and former CEO of ExxonMobil, announced on Saturday, January 27, that Poland, Ukraine, and the Baltic states are worried about the EU's increasing dependence on Russian gas after the construction of 'Nord Stream 2', and the U.S. agrees with them. According to Reuters, he stated that this new pipeline is a threat to Europe's energy security, and our (U.S. and European) strategic interests are one of the reasons for Washington's concerns regarding the EU's increasing dependence on Russian gas. Russia, accused of fueling unrest in Ukraine and occupying Crimea in 2014, has faced a series of sanctions from Europe and the U.S., particularly in the energy sector. Following increased tensions, Ukraine halted its purchase of Russian gas, but the transit of Russian gas through its territory to Europe continued. According to official statistics from Gazprom and the Ukrainian Oil and Gas Company, last year 47% of all Russian gas exports to Europe were conducted through Ukraine, generating several billion dollars in economic profit for the country. About 31% of Russian gas was also exported directly to Germany via 'Nord Stream 1', with the remainder reaching Europe through Belarus and the Baltic states. However, the Russia-Ukraine gas transit contract is valid until 2019, and Russian officials have stated they are unwilling to extend this agreement. Russia is currently investing in two new gas pipelines to Europe: 1- The 'Turk Stream' pipeline, half of which is completed and will be capable of exporting 32 billion cubic meters of Russian gas to Turkey and Europe by next year. 2- The 'Nord Stream 2' pipeline, which has only the underwater section remaining and is set to export 55 billion cubic meters of gas to Germany annually by 2019. The capacity of the 'Nord Stream 1' pipeline is also the same. Reuters also noted Germany and Austria's support for the new Russian pipeline, stating they are more focused on gas prices than on Europe's security concerns. The cost of gas transit via the Baltic Sea to Germany is significantly lower than other pipelines, resulting in lower gas prices in German markets. A spokesperson for the German Ministry of Energy stated that 'the increased transfer of Russian gas aligns with Europe's energy security interests, and the new 'Nord Stream 2' pipeline is economically viable and legally unproblematic.' Some major European companies, such as Austria's OMV, Germany's Wintershall and Uniper, the British-Dutch Shell, and France's Engie, along with Gazprom, are shareholders in this project, although the Russian company's share alone is 51%. Poland, which imports one-third of its gas from Russia and was occupied by the Soviet Union during World War II, strongly opposes the construction of 'Nord Stream 2'. The country has established several liquefied natural gas (LNG) terminals to reduce its dependence on Russian gas. Recently, it also signed a contract with the U.S. to purchase LNG. Mr. Tillerson also referred to this contract, stating that 'the U.S. is proud to export its gas to Poland.'