Nord Stream 2: the curious deals of the mecklenburgian foundation for climate protection

 The state of Mecklenburg-Vorpommern in the north of Germany has created a foundation for climate protection quite accurately one year ago. This foundation, the Stiftung Klima- und Umweltschutz MV, is seen as remedy to handle possible sanctions against operators and involved companies. However the object of the foundation and the backers are obscure. Recently the foundation purchased shares of a limited shipping company, the MAR Agency GmbH. The goals and intentions of this company are more than obscure. Traces lead to puppet-masters of Nord Stream 2, writes WELT:

Siegfried Kempe can look back on an adventurous life. The man from Mecklenburg had already sailed the seven seas as a sailor in GDR times. Later he maneuvered tugboats into the port of Rostock. In August 2018 it was over, retirement at the age of 63.

The local magazine "Der Warnemünder" paid tribute to the captain a. D. as someone who was a very educated man and gave good advice for retirement. But then everything turned out differently, Kempe was suddenly needed again. He should have a role in a play set on the grand stage of world politics.

The sailor is now an actor in the endless drama about Russian natural gas, American sanctions and German fickleness. However, hardly anyone knows, because Kempe acts behind the scenes. It's about the state-owned company Gazprom and its controversial pipeline in the Baltic Sea.

The commissioning of the line, which is now almost complete, was and is in jeopardy: First by punitive measures under the aegis of Donald Trump, now by Vladimir Putin's demonstration of power at the Ukrainian border.

In order to save the project, the state government of Mecklenburg-Western Pomerania and the Gazprom subsidiary Nord Stream 2 AG (NS2), which is responsible for the pipeline construction, have devised a sophisticated construct. And the name Kempe appears in it.

Gas prices: reflections about Russia as the main supply source

 French newspaper Le Monde reflects about the strategic options of the Bloc concerning gas supply in the light of skyrocketing energy prices and the clatter of boots at the border to Ukraine:

Europe is entering winter, and the question is no longer whether it will have gas to heat itself and run the factories, but at what price. It has flared up in recent weeks and costs six times more than a year ago. The bill for individuals and manufacturers will be heavy in 2022. The functioning of the European market lends itself to this, as does the economic context: demand is strong during this season, activity remains strong despite the threat of the Omicron variant of SARS-CoV -2, storage is at a very low level (63%) and the unexpected shutdown of French nuclear power plants is increasing tensions.

If there were just that ... Gas prices, and by extension electricity prices, are also trending against the backdrop of Russian boots on Ukraine's eastern borders. Russia supplies a third of the European Union (EU) gas. This share, greater than that of Norway and Algeria combined, puts Vladimir Putin in a strong position to derive double benefit, financial and political, from the situation. The Russian president has been playing this market power for months by asking Gazprom not to export more than expected by its contracts with European customers.

Nord Stream 2: former chancellor Gerhard Schröder takes over Gazprom's narrative

 Former german chancellor Gerhard Schröder turned mouth-piece for Gazprom justifies the corporations policies. German newspaper BILD debunks the inacurracies:

Kremlin manager and ex-chancellor Gerhard Schröder (77) is again protecting the gas policy of his friend Vladimir Putin (69). And is, once again, clearly next to the (whole) truth:

► Schröder writes in the “Handelsblatt” that Russian gas exports to Germany increased by 40 percent in 2021.

Fact: Gazprom itself has only reported a 33.2 percent increase since January. And that in comparison to the Corona minus year 2020, in which all exports collapsed

► Schröder suggests that Asia's “increased demand” makes gas more expensive.

Fact: Russia uses other gas fields for China and could easily deliver more to Europe. The total gas exports from Russia to China this year corresponds roughly to the volume of exports to Hungary or Slovakia and is therefore hardly relevant for the price.

► Schröder claims that every new pipeline (Nord Stream 2) will dampen price increases.

It is true that the Kremlin hardly uses the existing gas pipes. Because of political reasons! In October 2021, only 43 percent of the possible capacity will come via Belarus and Poland, and only 29 percent via Ukraine.

"Gerhard Schröder, Putin's gas lobbyist, is doing what he is paid for again: In view of the gas price crisis, he is grumbling at the USA and releasing his boss in the Kremlin from any responsibility," Reinhard Bütikofer (68, Greens) told BILD. "In contrast, the head of the International Energy Agency, Fatih Birol, recently stressed that Russia could do more to combat this crisis."

Bütikofer continues: “It was to be expected that Gerhard Schröder would use the gas crisis to advertise Nord Stream 2. But he cannot really deny the Russian blackmail attempt. Because the gas that it promises via Nord Stream 2 could long ago come to us via existing pipelines - through Ukraine. But what do Schröder care about the facts? After all, he's paid as a lobbyist. "

Nord Stream 2: is Gazprom blackmailing Germany with gas price?

As previously reported, experts warned for years  that Gazprom could use its dominant position as a gas supplier to blackmail Germany and other european states. 

According to expertes, this is what is happening right now. Now that the pipeline is fully constructed, there is still an operating license pending and the question of conformity with EU laws is unsolved before the pipeline is ready-to-use. However Gazprom presses forward to get the pipeline operational as soon as possible and points to hiking gas prices writes german newspaper BILD:

Bad news from Moscow for German gas customers!

A few days after the completion of the Russian Baltic Sea pipeline Nord Stream 2, it becomes clear: Russian President Vladimir Putin is using the pipe precisely for what experts have warned about for years. He blackmailed Germany and Europe. Anyone who does not play according to the rules of the state company Gazprom pays heavily or even has to freeze in winter.

First comeuppance: the price for Russian natural gas in Europe has already risen by a staggering 444 percent in the last twelve months.

A price increase that experts attribute to a large extent to the artificial reduction in imports by Russia's state-owned company Gazprom.

Explosive: Germany is more dependent on Russian gas than ever before. 55 percent of the natural gas burned in this country comes from Putin's empire.

Bad news from Moscow for German gas customers!

A few days after the completion of the Russian Baltic Sea pipeline Nord Stream 2, it becomes clear: Russian President Vladimir Putin is using the tube for exactly what experts have warned about for years. He blackmailed Germany and Europe. Anyone who does not play according to the rules of the state company Gazprom pays heavily or even has to freeze in winter.

First receipt: the price for Russian natural gas in Europe has already risen by a staggering 444 percent in the past twelve months.

A price increase that experts attribute in large part to the artificial reduction in imports by Russia's state-owned company Gazprom.

Explosive: Germany is more dependent on Russian gas than ever before. 55 percent of the natural gas burned in this country comes from Putin's empire.

Russia's gas giant Gazprom has not only reduced transit to Europe to a contractually agreed minimum through Ukraine - since the summer, significantly less gas has been flowing through the Yamal gas pipeline to Germany via Poland than would be necessary to ensure medium-term supply.

The result: Germany's natural gas storage facilities are currently only 63 percent full. Last year at this time it was 94 percent.

In addition, in July, for the first time in the history of the Yamal pipeline, Gazprom no longer took part in the auction of transport capacities for the next few years.

That is why experts warned in the summer that Gazprom would make Germany’s further inexpensive gas supply dependent on the commissioning of the Nord Stream 2 Baltic Sea tube. And that although the pipeline does not currently meet the requirements of the EU and therefore has neither a certification by the Federal Network Agency nor a permit to start operations by the authorities in Mecklenburg-Western Pomerania.

A horror scenario that came true this week.

Nobody less than Putin spokesman Dmitri Peskow now declared in Moscow: "Of course, the fastest possible commissioning of Nord Stream 2 will largely offset the natural gas prices in Europe."

To put it plainly: If Nord Stream 2 still does not go online after its completion because the Russians do not want to submit to European gas directives, the price for gas will continue to rise dramatically in our country.

Experts fear that too.

It is possible "that Russia and Gazprom are strategically and deliberately restricting exports to Europe (...) in order to influence and accelerate the decision-making process of the German and European authorities regarding the certification of Nord Stream 2", says Tom Marzec-Manser , leading gas expert at ICIS, opposite the "Tagesspiegel".

The US energy expert and senior researcher at the Center for European Policy Analyzes (CEPA) Benjamin Schmitt emphasizes that “Gazprom's undersupply of European gas storage facilities over existing routes such as Ukraine and Poland has contributed to the market pressure in recent months we see today ”.

Schmitt told BILD that leading experts in the field agreed that "the Kremlin will use the situation to force the EU to quickly certify Nord Stream 2". Meanwhile, according to gas expert Schmitt, Russian officials are also saying out loud "that a quick approval of Nord Stream 2 later this year could alleviate a potential energy crisis".

This also means: If Nord Stream 2 does not go live on time according to Moscow's terms, there could be serious - planned - delivery bottlenecks in the coming winter.

Nord Stream 2: will Gazprom start blackmail manoeuver to bypass EU regulation?

 While an agreement on the completion of the contentious pipeline has been found some energy and geopolitical observers spot ominous signs of suspicious shortening of gas.

While there is no more reasonable doubt about the imminent completion of Nord Stream 2 EU law requires unbundling, meaning: gas producer and pipeline operator must be dissociated. However both, producer and pipeline operator, are ultimately Gazprom-owned.

Experts see foul play of Gazprom to obtain an exemption, writes BILD:

Are millions of Germans threatened by a cold winter because Russia's ruler Vladimir Putin is using his natural gas as a weapon against us?

The dispute over the Russian gas pipeline Nord Stream 2 is escalating dramatically: There are increasing signs that the Kremlin is putting the pistol on Germany's chest so that the pipeline can start operating.

The status today: Nord Stream 2 AG - a wholly owned subsidiary of the Russian state-owned company Gazprom - wants to finish construction work on the tube this month. Shortly afterwards, Gazprom plans to route gas through the pipeline, which is to be delivered primarily to Germany, Austria and the Czech Republic.

Nord Stream 2: possible legal obstacles after completion

 In a very interesting paper Prof. Alan Riley explains that the contentious pipeline "Nord Stream 2" might not be operational even after constructional completion. The project may face legal counteraction.

Quote:

"However, even if a deal is not possible and Nord Stream 2 is technically completed despite the threat of US sanctions, it is far from clear that the pipeline can enter into operation any time soon. There is the prospect of a significant EU law battle at least over the application of the liberalization provisions of the Gas Directive 2009"

You can read the rest of the piece via the below link:

https://huri.harvard.edu/files/huri/files/riley_-_nord_stream_2.pdf?m=1618864282

Gazprom: many fires to fight

As the future of sanction-impacted pipeline Nord Stream 2 lies in the dark, Gazpromy faces problems on china-bound pipelines and struggles with low gas prices and liabilities, writes german newspaper WELT:

Just a few years ago, nobody at the Russian gas giant Gazprom suspected that a ship laying pipelines could become a symbol of the risk and instability of entrepreneurial success. “Fortuna” - the term used by the ancient Romans for the changeable fate - is the name of the Russian barge that is supposed to complete the controversial Baltic Sea gas pipeline Nord Stream 2.

It remains to be seen whether he will ultimately be able to build the 100 or more kilometers of pipeline that are still missing. On December 28, the ship completed the 2.6-kilometer section in German waters. In the middle of January the plan is to continue in Danish waters.

But the US, which had been hindering the work with threatened sanctions for the whole of last year, has prepared further sanctions so that Gazprom's European allies can stop the project. Europe would become too dependent on Russian gas, they say in Washington. The US also wants to sell its own gas in Europe.

Nord Stream 2: turmoil over fake climate and environmental foundation in Mecklenburg-Vorpommern

As reported, the government of the Land Mecklenburg-Vorpommern has created a foundation with the aim to ensure the completion of the contentious gas pipeline.

This draws heavy political criticism along the line of arguments that the purportedly environmental foundation has nothing to do with the preservation of nature but is only a front organsation almost entirely financed by russian money.

Source BILD: 

The warm rain from Saint Petersburg is followed by the cold shower of criticism from Germany.

The Schwerin state parliament passed a resolution on Thursday - without dissenting votes! - the establishment of a "Foundation for Climate and Environmental Protection MV". But the flowery-sounding name Foundation is supposed to wrap in cotton wool which goal the foundation is primarily pursuing: avoiding sanctions for companies involved in the construction of the Russian pipeline Nord Stream 2!

Politicians, environmental associations and representatives of civil society are shocked at the bold trick the state government of Mecklenburg-Western Pomerania, led by Manuela Schwesig (SPD), is using to push ahead with its gas deal.

INCREDIBLE: The “non-profit” and “state owned” foundation is 99 percent financed by the Russian state gas giant Gazprom. Schwesig's “Umweltstiftung” donated 20 million euros through its sole subsidiary, “Nord Stream 2 AG”. There is only 200,000 euros in foundation capital from the state budget.

According to its own statements, the state government plans "to set up a commercial business in the foundation with the aim of contributing to the progress of work on the Nord Stream 2 pipeline".

In plain language: All business of the pipeline partners should run through the state foundation, because it cannot fall under US sanctions - although the money for it comes from Russia.

Shock waves in Berlin: “With 20 million euros in start-up capital from Gazprom, the SPD-led state government de facto let itself be bought. Manuela Schwesig is following in the footsteps of former Chancellor and Putin friend Gerhard Schröder, ”said FDP foreign policy expert Renata Alt to BILD.

According to Alt, the decision of the state parliament of Mecklenburg-Western Pomerania to set up a foundation for “climate and environmental protection” is “hard to beat in terms of hypocrisy and hypocrisy”. In addition to Russian assets, German taxpayers' money would be used here "to circumvent the US sanctions against Nord Stream 2".

Nord Stream 2: Russia anticipates possible shift of E.U. countries to hydrogen

As countries of the bloc map out ways to disengage from climate-damaging fuels the plans point towards hydrogen. Russia, the market leader for oil and gas in Europe, anticipates this shift away from natural gas and reshuffles its production capacities. Gazprom will have to reflect the further use of the Nord Stream pipelines. Especially Nord Stream 2 coud turn out a major failed investment, writes german newspaper "Handelsblatt":

"According to Yuri Melnikow, senior analyst for energy issues at the Skolkowo University of Applied Sciences, hydrogen should be produced close to the sales markets. For Gazprom, this is primarily the European market. The company is currently exploring projects within the EU. Another option is hydrogen transport via the gas pipelines.

Otherwise, if the Europeans switch to hydrogen on a massive scale, Russia must fear that the pipelines will be shut down. The 8.5 billion euro Nord Stream 2, which is still under construction, will pay off after ten years at full capacity. If hydrogen production in Europe massively reduces gas imports, Nord Stream 2 threatens to become an investment ruin.

Gazprom is therefore considering sending at least one gas mixture mixed with hydrogen through the pipelines. In old pipelines, 20 percent of hydrogen could be added to natural gas, in new pipelines such as Nord Stream, the share could even be up to 70 percent, Gazprom estimates."

You can read the rest of the piece via the below link:

https://www.handelsblatt.com/politik/international/gazprom-und-rosatom-russlands-neue-energiestrategie-nord-stream-2-soll-wasserstoff-liefern/26039724.html?ticket=ST-10647373-baKJoldMLYHyyxtxnIdb-ap4 

Germany: outgoing US-Ambassador Grenell announces new sanctions against Nord Stream 2

US-ambassador to Germany Richard Grenell who unexpectedly terminated his appointment last week announces new sanctions against the Nord Stream 2- pipeline and warns Germany to reconsider its relationship to Russia, writes Handeslblatt:

"In the usual undiplomatic tone, Grenell calls on the federal government to fundamentally rethink its policy on Russia. "Germany has to stop feeding the beast while not paying enough for NATO," he told the Handelsblatt. Grenell had already left Berlin on Sunday. He will probably never come back to Germany.

The Americans have long been bothered by German imports of Russian gas. Above all, they fought the Nord Stream 2 Baltic Sea pipeline with a determination that had long been underestimated in the federal government. At the end of last year, the USA managed to force a construction freeze. Your means: threats of sanctions against western specialist companies who lay the pipes on the bottom of the Baltic Sea with their ships. Since then, the Russians have been trying to complete the rest of the pipeline themselves. To do this, they moved two ships to German coastal waters."

You can read the rest of the piece via the below link:

https://www.handelsblatt.com/politik/international/ostseepipeline-abschiedsgruss-von-us-botschafter-grenell-neue-drohung-gegen-nord-stream-2/25861262.html?ticket=ST-3507167-W9CwymPcLF6wv6FqTJ4F-ap4 

Gazprom’s gas exports revenues down in Q1

According to hellenicshippingnews.com : 

Natural gas exporting revenues of Russian gas giant Gazprom fell by 51.6% in the first quarter to $6.8 billion, the RIA news agency reported on Tuesday, citing customs data.

It also said that Gazprom’s average gas exporting price declined by 9% to $125 per 1,000 cubic metres in March from February.

Source:
https://www.hellenicshippingnews.com/gazproms-gas-exports-revenues-down-52-in-q1-ria/ 

Nord Stream 2: Gazprom's options after denial of exemptions by BNetzA

An interesting analysis of the options left to Gazprom after it is clear that the Nord Stream 2 pipeline will have to comply with the EU-gas-directive:

"Germany’s regulatory office Bundesnetzagentur announced it decided not to award derogation to Nord Stream 2, a gas pipeline connecting Germany and Russia, from the amended EU Gas Directive. According to the law, gas pipelines from outside of the EU that were not completed before 23 May 2019 need to have an independent operator, independently set tariffs and provide access to third parties. Gazprom, which owns the operator of the NS2 project, tried to argue that investment decisions about the pipeline had been made before 23 May last year, which meant the project had been somehow completed from the point of view of financing. Germany decided the gas pipeline had not been finished, which, by the way, was in line with common sense because a gas pipeline that does not connect point A to B cannot transmit gas, and Nord Stream’s Danish section is still under construction and is waiting for a permit from the Danish Energy Agency. The wait may be long, as the Agency had already delayed the project in the past when it took its time to make a previous decision. However, Russia may question the BnetzA ruling in court, similarly to what Poland’s PGNiG wanted to do if the decision had been in favor of Nord Stream 2. The court case may take place while the gas pipeline is allowed to operate, or not. This remains to be seen.

BnetzA’s decision means Nord Stream 2 AG will have to implement EU regulations with regard to the disputed pipeline. This is a hard nut to crack for Gazprom and a conflict between Russian and EU law. Russia granted Gazprom legal exclusivity over gas exports via gas pipelines, including Nord Stream 2, so it does not offer access to its pipelines to third parties. Additionally, Gazprom owns NS2 AG and is the pipe’s only gas provider, which means it would be responsible for setting tariffs. This goes against ownership unbundling required by the EU law.

Now Gazprom may either sell the pipeline, or hand over its operation to an “independent” company, that would guarantee fair transmission tariffs. Since Nord Stream 2 AG has a full share ownership it is not allowed to be the operator, but it remains to be seen whether this role could be played by a daughter company of the giant from Petersburg, which would hold a minority share. Perhaps the Russian-German company Gascade could become the pipe’s operator. Gascade is a joint venture of Gazprom and BASF that operates gas pipelines in east Germany, including OPAL, which is an onshore extension of Nord Stream, and EUGAL (in construction), an onshore leg of Nord Stream 2."

You can read the rest of the piece via the below link:

https://biznesalert.com/russia-eu-law-nord-stream-2-derogation-gas-directive/ 

Yamal pipeline: end of transit contract gives Poland leverage

Wojciech Jakobik writes in Biznesalert.pl:

"The political contract that defined the terms and conditions of gas transit via the Polish section of the Yamal gas pipeline will end on 16 May 2020. From then on the pipeline will enter its new normal, as the old contract rules will be replaced with EU regulations that ensure access to the pipe’s capacity in Poland on the basis of auctions."

You can read the rest of the piece via the below link:

https://biznesalert.com/poland-russia-yamal-gas-pipeline-gazprom/ 

The alliance of gas and soccer - vector of influence

An interesting short video by "Vox" explaining how Gazprom sponsors football clubs in Europe and thus expands its influence. The piece shows also how other state corporations of authoritarian countries choose football to manipulate the public.

Finland diversifies gas import, disengages from Gazprom

The russian department of german international broadcaster Deutsche Welle announced that Finland is going to import gas from Estonia now:

"The Russian company Gazprom Export, a subsidiary of the Gazprom corporation, has ceased to be the only gas supplier to Finland. As AFP reported on Saturday, January 4, citing the Estonian national electricity operator Elering AS, the bi-directional Balticconnector gas pipeline between Inkoo municipality in southern Finland and Paldiski in northern Estonia was commissioned on January 1. It will allow delivering gas to Latvia via Latvia from Estonia, received, in particular, from Norway."

You can read the rest of the piece using a translator via this link.

Poland ends gas procurement from Gazprom by 2022

Polish State energy company PGNiG announced that it will allow the gas procurement contract with Gazprom to expire by the end of the year 2022.

Instead PGNiG concluded agreements for LNG with USA, Qatar and Norway and will develop the LNG-terminal in Świnoujście.

It also entered in a partnership with Denmark and develop a pipeline, the "Baltic Pipe" to obtain gas from Norway.

See more information here:

https://www.polskieradio.pl/400/7764/Artykul/2404133,Ab-2022-wird-Polen-kein-russisches-Gas-mehr-importieren