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Germany considering four possible scenarios for Nord Stream ...
08-03-2021 16:50
Germany considering four possible scenarios for Nord Stream 2 project
Germany considering four possible scenarios for Nord Stream 2 project

The situation surrounding Nord Stream 2 is still uncertain. According to Handelsblatt, Germany's government is considering four ways this may play out. The German government has taken this step in order to strike a compromise with the United States that considers the project a security threat to Europe.

The newspaper reported that Berlin had been in talks with Washington on the future operation of the pipeline. One of the scenarios implies the refusal of the United States from sanctions against Germany. The German authorities are considering the possibility of creating a shutdown mechanism for the Nord Stream 2 gas pipeline, which would be used in case Russia terminates gas transit via Ukraine. Experts believe that such a mechanism would make it impossible for Russia to use gas supplies as a tool for putting political pressure on Ukraine.

In the second scenario, the pipeline’s construction may be suspended until talks conclude. To make a specific action plan, the US may create a special commission which will include representatives from the United States as well as some EU member states, Handelsblatt noted.

The third scenario proposed by the German authorities involves increased investments in Ukraine's economy. The German government supposes that this step could soften Washington's hard-line position.

The fourth scenario implies that the countries will continue constructing the gas pipeline, despite strong opposition from the US. At the moment, the Nord Stream 2 project is 95% complete. The total cost of its construction is estimated at $11 billion.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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