What is the Nord Stream 2 pipeline, and why does it matter to Russia?

The project is a natural gas line that stretches from Russian fields to the German coast, spanning 764 miles under the Baltic Sea. The line, at a cost of $11 billion, will double the capacity of the original 2011 Nord Stream, which runs parallel to the new project. The line will supply gas to Germany — a nation heavily dependent on gas and oil imports — at a relatively low cost as the continent’s production capacity decreases. The new pipeline is entirely owned by Gazprom. The company also owns 51 percent of the original Nord Stream pipeline. A group of European energy companies, including Shell and Wintershall, paid half the construction costs. Construction was completed in September, and the pipeline has been filled with gas since late December. Before it becomes operational, though, it needs regulatory approval from Germany and a review by European Union authorities. Scholz’s announcement on Tuesday stopped that process.

Why has Nord Stream 2 led to controversy in Ukraine and elsewhere?

Although proponents of the pipeline, including Germany and Russia, see it as a great business deal providing cheaper, cleaner energy, Nord Stream 2 has drawn ire from many opponents. U.S. leaders and lawmakers — both Democratic and Republican — fear that the Baltic pipeline would give Russia too much power over European gas supplies, handing Putin a wider market and geopolitical power as he pushes to reshape the European security landscape. During his term, President Donald Trump unsuccessfully tried to end the project, claiming Nord Stream 2 would make Germany “a captive to Russia.” Biden shared these concerns, which became more pronounced as Russia massed forces around Ukraine. Ukraine and Poland vehemently oppose the pipeline. Ukraine has long been an energy middleman nation, with Russian companies feeding much of Europe’s gas supply through Ukrainian soil and paying the country transit fees in the process. Critics have argued that Russia, in bypassing Ukraine, aims to weaken and isolate the nation.

What role does the United States play in the Nord Stream 2 debate?

Biden intensified pressure on the Kremlin with his promise in early February, after meeting with Scholz in Washington, that Nord Stream 2 would be stopped if Russian forces move into Ukraine. But it was up to officials in Berlin to decide whether the project would begin pumping gas to Europe. Biden previously conveyed his opposition to the pipeline when Germany’s then-Chancellor Angela Merkel — a vigorous pipeline supporter — visited Washington in July. The leaders agreed that they would oppose any effort by Russia to use Nord Stream 2 as a weapon against Ukraine. The United States imposed fresh sanctions on entities and vessels connected with the pipeline last year. But in a move that angered nations and lawmakers opposing the pipeline, the Biden administration — arguing that the project was nearly done anyway — waived those sanctions in May as part of its effort to rebuild relations with European allies.

What is Germany’s stance on Nord Stream 2?

For months, Germany faced criticism for its reluctance to commit to canceling the pipeline in the event of an invasion. German Foreign Minister Annalena Baerbock said in December that Nord Stream 2 would not be allowed to operate “in the event of further escalation” in Ukraine. But divisions within the German government persisted, and Scholz had not offered a firm commitment. Blocking the pipeline would cause energy supply problems for Germany — but Berlin’s divergent approach from other European powers sparked concerns that Russia could exploit divisions within NATO. During the German leader’s first visit to the White House, Scholz sought to project a united front with NATO allies. Biden praised Germany as “completely, totally, thoroughly reliable.” But Scholz stopped short of explicitly pledging to halt Nord Stream 2, emphasizing the need to retain ambiguity around sanctions to keep pressure on Russia. Most of that ambiguity ended with Scholz’s announcement on Tuesday, which came after Russia reportedly moved troops into separatist regions of eastern Ukraine. “By deciding to put Nord Stream 2 on ice, Germany has taken an important first step,” said Jana Puglierin, senior policy fellow at the European Council on Foreign Relations. “But this can only be the beginning: Tougher sanctions must follow.” “Europe must make preparations to take in Ukrainian refugees and strengthen NATO’s deterrence capabilities,” said Puglierin, who heads the council’s Berlin office. "Berlin is central to all this and must take the lead in Europe.” This report has been updated.

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What is the Nord Stream 2 pipeline, and how does it relate to the Ukraine crisis?

By Sammy Westfall

Claire Parker

Rachel Pannett

and

Erin Cunningham

Updated February 24, 2022 at 1:47 p.m. EST|Published February 8, 2022 at 11:53 a.m. EST

Absorber columns at the Gazprom PJSC Slavyanskaya compressor station, the starting point of the Nord Stream 2 gas pipeline, in Ust-Luga, Russia, on Jan. 28. (Andrey Rudakov/Bloomberg News)

President Biden on Wednesday announced sanctions against the company behind Nord Stream 2, the controversial pipeline project built to transport gas from Russia to Germany.

The sanctions target Nord Stream 2 AG, whose parent company is the Russian state-owned energy giant Gazprom.

“These steps are another piece of our initial tranche of sanctions in response to Russia’s actions in Ukraine,” Biden said in a statement. “Through his actions, President Putin has provided the world with an overwhelming incentive to move away from Russian gas and to other forms of energy.”