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FX.co ★ EU gas prices soar amid Nord Stream 2 woes

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Forex Humor:::2021-12-28T13:50:50

EU gas prices soar amid Nord Stream 2 woes

The Nord Stream 2 drama seems to never end. Parties involved in this project are very suspicious of each other as the project itself has turned from a commercial into a political one. The EU is sure that Russia uses gas supplies as political leverage. The Kremlin has warned the eurozone many times that it will shut off all gas supplies to Europe, leaving lots of states scrambling to cope during a winter cold snap. These threats come when the EU dares to disagree with Moscow. Thus, the EU believes that Russia mixes politics with economic partnership.

Knowing the catastrophic situation in the euro area with gas supplies, Russia uses Nord Stream 2 to enforce its own agenda. Given that the relations between Russia and the EU are strained, the parties cannot reach an agreement on its launch. The pipeline has already been completed in September. When obtaining construction permits, the Kremlin has repeatedly promised to fulfill the obligations on the supply of natural gas. However, the closer the construction of the gas pipeline came to an end, the more often gas supplies in other directions were stopped. Russian suppliers which are state-owned companies seem to be trying to force Europe to launch Nord Stream 2 quicker. At the same time, Russians have every reason to be bitter. Nord Stream 2 certification has been postponed for six months. Yet, Germany assures it is purely due to red tape.

Alexander Graf Lambsdorff, deputy chairman of the Free Democratic Party faction in the Bundestag, openly stated that even after receiving certification from the energy regulator, Nord Stream 2 would not be connected to the gas distribution network before September next year. Dmitry Peskov, the Kremlin spokesman, said the pipeline company "is working with the regulator and fulfilling all its demands. We just need to be a bit more patient." "This is technical, bureaucratic and legal work. So it’s still going on, let’s not get ahead of ourselves," he added.


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