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: Oil and gas are the lifeblood of Germany’s manufacturing economy, but the country produces very little energy domestically and is dependent on imports for 98% of its oil and 92% of its gas supply. As of 2015, Russia already supplied the plurality of its oil and gas (40% and 35% respectively), so it was with no great surprise that plans to increase Russia’s presence were met with hostility on both sides of the Atlantic. The core concern centers around Germany’s dependence on Russian energy which could make it susceptible to exploitation and more vulnerable to interference. In an interview with CNBC’s Brian Sullivan in March, Perry spoke on behalf of the United States when warning that “Russian gas has strings attached.” In fact, U.S. Congress and the European Parliament passed resolutions calling for an end to construction of the pipeline, citing Russian dependence as a threat to the common market and the EU’s strategic interests. 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.