Resumption of Nord Stream 2 Construction Blocked by US Sanctions... Will Biden Approve?

Gazprom to Resume Remaining Nord Stream Pipeline Construction on 15th
Focus on Biden Administration's Policy Direction Considering Germany's Position

[Asia Economy Reporter Naju-seok] Construction of Nord Stream 2, which had been halted due to U.S. sanctions, will resume this week. Attention is focused on whether the new administration of U.S. President-elect Joe Biden will once again put a brake on the joint project between Russia and Germany.

On the 10th (local time), Russian state-owned natural gas company Gazprom announced that it will resume construction of the Nord Stream 2 natural gas pipeline connecting Russia and Germany through the Baltic Sea starting from the 15th. This project had been suspended for the past year due to U.S. sanctions.

This project, which connects 1,230 km of underwater pipeline, aims to supply Russian natural gas via maritime routes without passing through Ukraine or other countries. It was supposed to be completed last year, but in December 2019, the Swiss pipeline construction company Allseas decided to halt the project due to the possibility of U.S. sanctions, leaving about 120 km of construction unfinished. Gazprom plans to complete the remaining pipeline construction using its own vessels and other resources.

Russia and Germany have maintained that Nord Stream 2 is a project pursued for economic purposes. On the other hand, the U.S. has been wary that the construction of Nord Stream 2 would increase Europe’s dependence on Russian natural gas. It is also related to U.S. shale gas exports.

Eastern European countries have also expressed concerns that Western Europe, including Germany, might become too close to Russia. For Ukraine, through which previous natural gas pipelines passed, the construction of Nord Stream 2 could weaken its negotiating power.

The key question is whether the Biden administration will block the Nord Stream 2 project as the Donald Trump administration did. Naz Masraf, Europe director at risk consulting firm Eurasia, said, "President-elect Biden has shown more sensitivity to Europe, especially Germany, than President Trump," adding, "Using sanctions as leverage, the U.S. could pressure Germany to impose restrictions on the operation of Nord Stream 2 or to pay attention to U.S. concerns regarding Ukraine-related issues." While the project itself may not be stopped, its scale could be limited.

This content was produced with the assistance of AI translation services.