Daily Management Review

Nord Stream 2 Sanction And Political Risks


The pipeline could be a pressure point?

Source: creativecommons.org; (CC BY-SA 4.0)
Source: creativecommons.org; (CC BY-SA 4.0)
One can expect to see the gas transportation process from Russia to Germany through the “Nord Stream 2 pipeline” getting approval by mid-2022, reported stated one of the banker’s chief executives involved in financing the project.
The above mentioned pipeline project is helmed by Gazprom of Russia which achieved its completion in last September while it now awaits for the “German network” agency’s final certificate, which is likely to be decided only after the Q1 of 2022.
The said initiative has always been weighing on the straining diplomatic ties between Ukraine and Russia which stand at the verge of open conflict, amid speculation that the pipeline could be a pressure point.
Although, the chief executive of Uniper, Maubach, dismissed the speculation by informing the Rheinische Post of Germany that he doesn’t foresee any political intervention. In his words:
“I don't see any political interference, the network agency is reviewing as planned. It could happen in mid-2022. Nord Stream 2 is important”.
Uniper belongs to the group of five energy firms of Europe while the others on the group are Wintershall Dea, Shell, OMV, and Engie, reported Reuters. Moreover, Uniper has financed fifty percent of Nord Stream 2’s cost which is whooping “$11 billion”.
While Maubach was optimistic saying:
“Every additional import possibility helps to ease the situation in the gas market”.
He also foresaw the political risks involved:
“But of course there are political risks: if the Russia-Ukraine conflict intensifies, the pipeline could become the target of U.S. sanctions.”