Scholz imposes sanctions covering the Nord Stream 2 gas pipeline
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Defence ministers from the UK, the Netherlands, the Baltic states and Nordic countries came together to denounce Russia’s recognition of the Donetsk and Luhansk regions as independent states as an “unjustified act” on Tuesday. The statement is part of a UK-led joint Expeditionary Force and was issued after a meeting in Leicestershire. Vladimir Putin signed a decree recognising the rebel-held territories in eastern Ukraine as republics, later deploying Russian troops there in order to “maintain peace”.
The decision sparked intense backlash from much of the western world, with many declaring that it was a “grave breach” of international law.
In response, German Chancellor Olaf Scholz announced that his country would stop the certification process for the Nord Stream 2 pipeline.
Many say the project has led to a hesitancy in Europe’s decision-making process against Russia, as the pipeline — a newer version of an already existing supply — directly links Russia with Germany and, by extension, the rest of Europe.
In total, the continent relies on Russia for 40 percent of its gas supply, with over 10 percent of this coming through Ukraine.
Amid concerns that Russia could cut Europe’s gas supply, Putin assured on Tuesday that the country would continue supplying gas, and said: “Russia, for its part, intends to continue uninterrupted supplies of this raw material, including LNG, to world markets.”
But, as European nations begin to slap sanctions on Russia, many fear that that promise could soon change.
Professor Julian Lindley-French, an internationally recognised strategic analyst and adviser in defence, who has worked with NATO, warned of a scenario where Russia targets European gas and governments are forced to employ a policy of rationing.
He told Express.co.uk: “Russia is ruthlessly exploiting this situation because at the moment our gas storage is so limited that the simple fact is that we’d have to prioritise and ration gas in the event of being denied Russia gas ‒ or at least Germany and other European countries would.
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“If you’re going to keep the cookers and heating on you’d have to starve industry — that’s the reality.
“And Russia will exploit this, it’s part of its new hybrid war strategy.”
Prof Lindley-French went on to describe Germany’s recent scrapping of its last nuclear power stations as “nonsensical”.
He said its obsession with carbon natural goals “at all costs” had made it “fundamentally reliant” on Russia for much of its energy.
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The EU has assured that Germany’s decision to halt Nord Stream 2 would not affect gas supplies to Europe as the pipeline is not yet in operation.
A spokesman for the European Commission said: “Nord Stream 2 is not yet functioning, [and] is not supplying energy to Europe.
“It’s not a different source of energy, it’s a different pipeline for an existing supplier.
“There’s no change in the current situation.”
The pipeline would have doubled gas supplies to Germany, adding to the first Nord Stream pipeline that began operating in late 2012.
But while gas supplies will remain the same, German Vice-Chancellor and Economy Minister Robert Habeck said the move would now contribute to further price rises.
Oil prices soared to a seven-year high on Tuesday, while stock markets plunged after Putin ordered Russian troops into eastern Ukraine.
Benchmark Brent crude rose 2.4 percent to $97.70 (£72.07) a barrel, its highest level since 2014, with analysts predicting the $100 (£73) milestone could be passed in the coming days.
European gas prices jumped as much as 13 percent, while the UK equivalent was up more than 8 percent.
Politico noted that the West’s sanctions come with a high risk of “helping fund the Kremlin’s war machine through payments for oil and gas”.
Oil and gas are responsible for more than 60 percent of Russia’s exports and provide more than 30 percent of the country’s gross domestic product (GDP).
It has been hit hard by price plunges in the past, like during the 2014 oil price collapse, where Russia’s economy was savaged with devastating effect.
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