Ukraine, Russia, the Gas and the policy

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The Russian Gas Pipeline Nord Stream 2 through the Baltic sea is more than controversial. Now, the Federal government also applies the brakes. First, to be sure, that the Ukraine Gas remains a transit country. Sabine Kinkartz, Berlin.

The beginning of may, excavators began in the extreme North-East of Germany, near Greifswald, a ditch to dig. It is the site of the Baltic Pipeline “Nord Stream 2”. Completed the gas pipeline between St. Petersburg and the German Baltic sea coast is supposed to be 1200 kilometres long, and finally so much Russian Gas directly to Europe can pump that the previous Transit through Ukraine is superfluous.

It seems that wanted the Russians to the facts of the political dispute about Nord Stream 2 in the long run, into an Empty run. Within the EU, the majority of States are against the project. Support comes only from Germany, Austria, the Netherlands and France. This is not surprising, however, in addition to the state, Russian energy giant Gazprom, the German companies Wintershall and E. ON Ruhrgas with 15.5 percent each, Gasuine from the Netherlands and Engie from France, each with nine per cent in the project.

A change of course in Berlin

The Federal government, represented until recently, the view that the Pipeline construction was a project of the economy. The strategic context of Russian foreign policy, you do not want to admit for a long time. But this has changed. During a visit of the Ukrainian President, Petro Poroshenko, in April in Berlin, German Chancellor Angela Merkel acknowledged that “it is only an economic project, but also to take into account that, of course, also political factors”.

It could be that the Ukrainian pipes would empty the traps. Then the Chancellor said something that made the guest from Kiev, but also other Eastern European States sit up and take notice. “That’s why I made it very clear that a project of Nord Stream 2, without that we have clarity about how it goes with the Ukrainian transit role, from our point of view,” says Merkel.

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Nord Stream 2: Merkel is hesitant on gas pipeline project

A case for Peter Altmaier

Although the Federal government can’t stop the Nord Stream project. But the Chancellor has decided to convey in the energy dispute between Russia and Ukraine. Probably in the hope that an agreement in the Gas dispute positively to the Minsk ceasefire and peace process in the East could radiate Ukraine. Merkel turned her economy Minister, Peter Altmaier, has put in the last two months some leverage in the movement.

Altmaier was on a diplomatic Mission to Kiev and Moscow and left no stone unturned, to the hardened positions to soften. With Success. In Berlin, a first round was held in so-called Energy dialogue, where the Ukrainian Ministers for foreign Minister Pavlo Klimkin, the Russian energy Minister Alexander Novak, EU Vice President Maros Sefcovic, as well as representatives of the Russian and the Ukrainian gas industry part. The Meeting took place in a “good, substantive and constructive atmosphere,” said Altmaier. Sefcovic stressed that it is thanks to the personal involvement of Angela Merkel and Altmaier, was that the conversations had ever taken place.

The roadmap is

Results were not expected from the trilateral Meeting, the first in the Federal Ministry for economic Affairs and then in a larger group without German participation, in the representation of the European Commission took place in Berlin. In the next step, an expert group should now discuss in September, technical issues, said EU energy Commissioner Sefcovic. For October, he had proposed another Meeting at the political level. This should then take place every six to eight weeks.

“A constructive and stable cooperation between Russia and the Ukraine in the energy sector for both countries and the European Union is of the utmost importance,” says Sefcovic. “The need for a continuous and long-term transit of Russian Gas through Ukraine to the EU in a reliable and economically viable manner is an indispensable part.” Not much time remains for negotiations. The previous agreement, which regulates the Gas Transit from Russia through the Ukraine, by the end of 2019.

Controversial and thereby delayed

Actually, the North should be Stream 2 Pipeline ready by then, but no more now. It is therefore in the interest of Russia, a follow-up Treaty with the Ukraine to negotiate. To do this, you will also be prepared, said Russian President Vladimir Putin during the visit of Angela Merkel in Moscow in may. The Russian energy Minister Novak said the Agency Interfax according to the lines through the Ukraine would also be used in the next five to ten years because Moscow with rising Gas computing demand.

However, Ukrainians are skeptical. They fear that the Russians are alone interested, to bridge the time until the completion of the second Baltic Pipeline, and then the Transit services. The would have for Ukraine huge economic losses. In 2017, the state-owned company Naftogaz made with the Transit of almost 94 billion cubic meters of Gas to Western Europe, nearly € 1.1 billion profit. That’s the equivalent of more than four percent of the state’s revenue.

Massive Security Concerns

In addition, it would increase the dependence of Ukraine from Russia. Moscow could turn to the Ukraine, one side of the Gas valve, and without that, there would be conflict with its Western customers. The Ukraine would be politically vulnerable to blackmail.

To the extent that it wants to let the Federal government in any case. “A consensual solution is in the interest of all parties Involved,” says Minister of economic Affairs, Peter Altmaier. “We expect that there will be difficult conversations, but that it is possible to come up with solutions, which will ensure far beyond 2020, and that the legitimate security interests of Ukraine are guaranteed, and that a substantial gas transit from Russia through Ukraine will be to Europe.”

In Kiev caught the scent of the morning air

What is meant by “substantial” to be addressed at the time of the energy discussions. EU Commissioner Sefcovic said that the group of experts set up to examine the impact of new Gas lines as well as the European demand for gas in the next decade. Also would be investigated, what impact will it have, if as planned, a new independent Ukrainian network operator for the Transit responsible.

Behind closed doors is to hear from the Federal Ministry of economy, by the way, that the Ukraine has increased its expectations of the energy talks with Russia. The background of the negative attitude of U.S. President Donald Trump compared to the Nord Stream Pipeline. In Kiev to hope that Trump will bring to the project. As a result, the Ukrainians see now in a much better negotiating position than before.