Sat05192012

Last update12:07:14 PM

Back Europe Europe News Business Russia and Germany inaugurate gas pipeline in northern Europe

Russia and Germany inaugurate gas pipeline in northern Europe

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By Susana Aguirre

Russian President Dmitry Medvedev and German Chancellor Angela Merkel inaugurated on Tuesday the first phase of what is considered that will be the largest energy infrastructure in Europe. This is the Baltic gas pipeline linking Germany with Russia.

The budget for this project is 7.300 billion euros, which has raised suspicions in the regions of Warsaw and Kiev.
The Nord Stream pipeline capacity at peak performance will exceed 55.000 million cubic meters of gas per year, which will be transported through 1.224 km of pipes laid on the Baltic Sea bottom.

Thus, the Russians managed to avoid the gas transfer through Ukraine and Poland to achieve supply the most lucrative markets in Western Europe.

Among those attending the ceremony was Prime Minister of Netherlands, Mark Rutte, and of France, Francois Fillon. The second conduit shall be authorized in 2012 by completing the entire project.

Ukraine and Poland have spoken against the construction of this pipeline. The current Polish Foreign Minister Radoslav Sikorski compared the project to the secret-sharing project of Poland’s territory between Hitler and Stalin in 1939.
Given that Polish gas imports from Russia amounted to 90%, Poland, a member of the European Union, feels marginalized in the energy negotiations.

The state-controlled gas company Gazprom, satisfies a quarter of European gas demand. Ukraine is the injured party since it loses a way to pressure Russia in the case renegotiations of energy prices is given.

During the so-called gas wars in 2006 and 2009, Ukraine cut off fuel transportation through its territory on several occasions in order to pressure Russia.

Besides running out of pressure tool, Ukraine will receive less earned incomes in transportation of gas through their infrastructure.


 

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