Title: Nord Stream 2 explained: What it is and why it's proving controversial
Headings: Nord Stream 2 explained: What it is and why it’s proving controversial
Nord Stream 2 explained: What it is and why it’s proving controversial
Key Points
What is Nord Stream 2?
German dependence
Ukrainian isolation
Nordic security

Content: Germany, Europe’s biggest natural gas consumer, has made efforts to downplay the relevance of Russian energy on the nation’s security. German Defense Minister Ursula von der Leyen has previously told CNBC that the country is not too concerned over security risks, arguing that it will sufficiently diversify their imports. The route of a proposed new gas pipeline from Russia to Europe. nord-stream2.com
Ukrainian isolation
Since gaining its independence at the end of the Cold War, Ukraine has been Russia’s gatekeeper to the European gas market. As of 2017, some 40% of Europe’s total gas supply was fed by Russian companies through Ukrainian soil, with transit fees providing Kiev with roughly $2 billion to $3 billion annually. This “middle-man” status provides Ukraine with substantial geopolitical leverage, so attempts to bypass the ex-soviet state with this new pipeline in the Baltic Sea have raised alarm bells. Many fear that Russia is deliberately attempting to weaken the country for its own strategic advantage. Ending gas transit could reduce Ukraine’s GDP (gross domestic product) by up to 3%. Meanwhile, the annexation of Crimea in 2014 provides a stark reminder as to the potential consequences of isolation from Europe. While German Chancellor Angela Merkel and others have insisted that gas must continue to flow through Ukraine, no arrangements have been made and Russia remains unreserved about its intentions to restrict gas supplies once the new pipeline is complete.