“Why would you support Ukraine with one hand and strangle it with the other” Deputy Assistant Secretary for Energy Diplomacy, Robin Dunnigan, told a conference of policymakers. “Cutting off all gas transit through Ukraine would deprive it of $2.2 billion in annual revenue”.
According to Dunningan,the Nord Stream 2 pipeline,born to boost Russian gas supplies to Germany, shell deprive Ukraine in transit fees and runs counter to the EU’s goal of reducing its energy reliance on Russia.
Russia’s Gazprom sends today 55 billion cubic meters per year to Germany, across the Baltic via the Nord Stream 1, and with the new project shall double this capacity. Gazprom sends also a large volume of gas to EU via Ukraine but is willing to bypass this route, via a new pipeline through Turkey.
Gazprom recently formed up a consortium with E.ON , BASF/Wintershall, OMV, ENGIE and Royal Dutch Shell for the Nord Stream-2 with a cost of 10 billion euros.
While the EU and USA have imposed sanctions on Russia, because of its annexation of Crimea and its support to the separatist rebels, energy ties between Moscow and Europe get stronger.Russia provides around one third of the EU’s energy needs.
According to Dunningan: “North Stream-2 actually threatens not only Ukraine’s survivability and their resources, but it is a risk to fuel diversification in Europe, especially southeastern Europe”.
Dunningan should not forget that the gas bill of Ukraine, for billions of dollars every year, is paid by Europe. The only way for Europe to guarantee the passage of the gas through Ukraine. Furthermore the american shale gas will not be competitive in Europe.
The gas war has just started and the winter shall roll the dices.