US sees Nord Stream 2 as leverage in Ukraine crisis

The US sees state-controlled Gazprom's 55bn m³/yr Nord Stream 2 project as a means of exerting pressure on Russia over Ukraine, secretary of state Anthony Blinken said ahead of a meeting today with Russian foreign minister Sergey Lavrov.

"Gas is not flowing through Nord Stream 2 yet, which means that the pipeline is leverage for Germany, the United States, and our allies - not Russia," Blinken said. "That's undoubtedly something that Moscow is weighing as it considers its next move, particularly given the strong statements countries have made about the serious consequences Russia will face if it commits further aggression against Ukraine."

Blinken was speaking alongside German foreign minister Annalena Baerbock. Although Baerbock did not refer to Nord Stream 2, she did note that "further aggressive attitude" by Russia would have "grave" consequences.

Nord Stream 2, which will carry Russian gas across the Baltic Sea to Germany, is ready from a technical perspective. Its two strings have already been filled with operational gas. But German energy regulator Bnetza has yet to certify the pipeline's operator, and said last month that it would not make a final decision in the first half of 2022. Any draft decision made by the German regulator would have to be sent to the European Commission before certification can be completed.

In an attempt to de-escalate tensions on Ukraine's border with Russia, Blinken has already travelled to Kyiv and Berlin this week, and he is meeting Lavrov in Geneva today. Yesterday he met German chancellor Olaf Scholz, who has previously referred to Gazprom's pipeline as an advanced "private economic project". Scholz now talks of Russian aggression as having very high "economic, political and financial" consequences.

"I've heard the [German] chancellor say as recently as a few days ago that in the event of Russian aggression against Ukraine, there will be severe costs and everything will be on the table," Blinken said following his meeting with Scholz.

Blinken said Scholz had reiterated his agreement with the US on not allowing the Russian government to use energy as a weapon and on providing for Ukraine's energy security.

Ahead of his meeting with Lavrov, Blinken said he did not anticipate any "breakthroughs".

By Dafydd ab Iago