Earlier this month, the world’s largest pipe-laying vessel, the Solitaire, began work on the Gulf of Finland section of the Nord Stream natural gas pipeline.
The vessel’s name is appropriate, as the pipeline represents Germany’s choice to go it alone in achieving energy security within the European Union. Nord Stream, one of the longest and most complex undersea pipeline projects ever conceived, runs directly from Russia to Germany on the Baltic Sea bed. It avoids the Baltic states, the Nordics and Poland, affording Germany its own €7.4 billion privileged link to Russian resources.
In the same week that the Solitaire began laying its pipe, Poland was set to begin work on its own Baltic Sea project: a terminal for liquefied natural gas (LNG) at Swinoujscie. At the moment, Polish consumers are heavily dependent on Russia for their natural-gas needs—a reality that doesn’t sit well in Warsaw given the perennially problematic relations with Moscow. Russia has in the past cut transit of gas through Ukraine, denied oil to Lithuania and enshrines in its national-security strategy the use of energy resources as a foreign-policy tool. Starting in 2014, then, the almost €800 million LNG terminal would allow for 30%-40% of Polish gas needs to come by tanker from places like Qatar.
One would think that as part of its stated policy of improving relations with Warsaw, Chancellor Angela Merkel’s government would seek to repair intra-EU mistrust on energy security. But Germany will have none of that. Part of its plan to make Nord Stream worthwhile is to sell gas to the Poles—that is, Russian gas, but from the opposite direction. The LNG terminal therefore, is in direct competition with what Polish Foreign Minister Radek Sikorsky has called the
Molotov-Ribbentrop pipeline. So, just before the start of the terminal’s construction, Berlin issued a formal complaint, saying its placement is a cross-border issue and may violate the Espoo Convention, the same environmental agreement used by Poland and Germany’s other neighbors to protest against Nord Stream, delaying its construction for several years. The tables have turned. And now Berlin is looking to Brussels for support.
At the end of August, Germany voted against providing an €80 million EU subsidy to kick-start construction of the Swinoujscie terminal. Now, representatives of Germany’s E.On Ruhrgas and BASF/Wintershall, together with Russia’s Gazprom—all Nord Stream partners—are said to be lobbying hard in Brussels for support for an environmental re-evaluation of Poland’s LNG plans that could set the project back two to three years. With Nord Stream due to be finished in 2012, its consortium, which also includes the Netherlands’ Gasunie and France’s GDF Suez, will then have ample time to strong-arm Polish consumers into accepting a deal. As Warsaw has just renewed its import contract with Gazprom for another 15 years of gas through the Yamal-Europe pipeline from the east, Berlin’s plans would amount to a Russo-German energy pincer of Poland.
It’s not just Polish energy security that is at stake. EU aims for greater energy solidarity among member states begin to look laughable when its largest economy so blatantly undermines them. It is one thing to move forward with an exclusive pipeline that essentially positions Germany as Russia’s distributor in Central Europe, but it is quite another to actively attempt to scuttle a neighboring member-state’s energy diversification plans at the EU level.
Poland’s deputy finance minister, Mikolaj Budzanowski, has said that Polskie LNG will probably move forward with the Swinoujscie terminal even without EU funding. But the issue here is not whether the terminal gets built. It is about high-profile bickering by two EU member states about bird habitats in the Baltic, while Russia’s Vladimir Putin—who once complained “Why does everything have to go through Poland?”—savors another victory for his energy weapon.
The European Commission is set to decide at the end of the month whether or not it will fund the LNG terminal. The symbolism of this decision is difficult to overstate. The EU’s energy commissioner is German, but Günther Oettinger is not close to Mrs. Merkel and has vowed to be a champion of EU energy solidarity. This is an opportunity for him, as well as Commission President José Manuel Barroso, to draw a line in the sand, to send a message that their talk about a common EU energy policy is not just wishful thinking. Step one in that process: Teach the Solitaire player Bridge.
This post first appeared in the Wall Street Journal.
#1 by Manuel on September 13, 2010 - 10:21 am
“…an exclusive pipeline that essentially positions
Germany as Russia’s distributor…” That is all you must understand. Realpolitik. And there is nothing wrong with it.
#2 by Jakob on September 13, 2010 - 1:17 pm
It would be interesting to know whether there is an internal debate about this or not in Germany.
#3 by marco arcaglia on September 13, 2010 - 7:51 pm
I see many reasons for which Germany wants its energy routes to be independent from Poland’s or other ex-Soviet bloc countries. One of them, self-evident from the article itself, is not letting that Warsaw’s clearly not serene relatioship with Russia hurt Germany’s business.
Moreover, before of saying that the EU mut rush to sponsor a project that essentially duplicates an existing infrastructure without bringing evident benefits to other countries than Poland, we shoul also remember that Poland recent history isn’t one of utmost support for European Union growth and centrality either.
The orientation of Poland to favor US / Nato ties in contrast with Russia over pro-Eu stances in cooperation with the largest gas provider of the continent is quite well known. Germany’s contribution to EU is incomparably larger than Poland’s. It is logic Germany gets more say in it.
We cannot and must not let countries that have openly contrasted many pro-Eu policies 8keeping a willingly marginal role) enjoy from EU carte-blanche support whenever they see fit for whatever they deem prioritary.
#4 by no-name on September 14, 2010 - 4:39 am
USA uses its economic might almost daily in order to dominate the world politically. What’s wrong when Russia does the same?
#5 by Raff on September 14, 2010 - 10:21 am
is it not also the case, however, that Merkel champions greater internal energy cooperation? Thus binding Europe closer internally…
#6 by Anonymous on September 14, 2010 - 5:48 pm
@#4
The answer is brownie points for the author dear no-name. Note that “the article first appeared in the Wall Street Jurnal”. Must’ve scored him a few.
#7 by Petr on September 15, 2010 - 9:36 pm
“Poland recent history isn’t one of utmost support for European Union growth and centrality either.”
Cases like this Ribbentropp-Molotov pipeline is exactly the reason why Poland and other C&E European countries have more faith in NATO and transatlantic ties than gambling their security primarily on the Franco-German EU which misses no opportunity court totalitarian Russia at every given opportunity.
“We cannot and must not let countries that have openly contrasted many pro-Eu policies 8keeping a willingly marginal role) enjoy from EU carte-blanche support”
Who exactly is those “we” you feel authorized to speak on behalf of? Eurosocialists in the parallel universe of Brussels?
#8 by Piotr on September 16, 2010 - 2:02 am
@Manuel
Realpolitik? rite so why we always hear about EU solidarity and european values and so on…its just a bunch of crap, crap used when some influencial countries want to push their goals.What we need to understand is that EU is not democratic and fair, their members are not equal and more or less its just another tool in hands of France and Germany aswell as in hands of some other countries from founding 6.Only chance for Central Europe to be big power is to create some kind of confederation like it was during Polish-Lithuanian Commonwealth theres no need for dillusional counting on Western Europe’s solidarity, history teach that they need us when they are in troubles but they can easily forget about us whenever we need help back..
#9 by Piotr on September 16, 2010 - 2:27 am
@marco arcaglia
Rite can you answer me a few questions?
1. when and how did Poland ever affected gas transit to Germany and western Europe?
2. whet can you say about Polish economic interests and hurting bussiness?
3. its not only Poland who will benefit from LNG port.Thanks to it other CEE countries can highly benefited by ordering liquified gas for they own needs by Polish LNG and further by interconnectors with Poland.
4. who else then Germany and most clearly Russia will benefit from Nord Stream pipeline?and what is it if not just plain duplication of existing pipelines in Poland and Ukraine?
5. What about German history?Russian history and nowadays?Is it and example of democratic values and solidarity with their neighbours?
6. does it surprise you that Central Europe trust in NATO nad its alliances with US?Its hard to find any single moment during european history when western europe had helped CE countries and confronted Russia.
7. how u can seriously expect that anybody gonna be so dillusional to count on Russia who is light years from democracy?
8. you are saying that Poland is willingly marginal country..as Poland is a member of G6, today sixth EU economy, promotor of European defence its is really hard to agree with you on that.Franco German tandem wants to have the most to say in the EU thats why in for example project for EEAS looks like EU had never expanded..
#10 by normal on September 16, 2010 - 5:32 am
No one likes the PLC except Poles, so what you desire is the ability for Poland to dominate its neighbors. Lithuanians, Belorusians, Ukrainians, etc. were pushed into the margins in their own lands.
#11 by Piotr on September 16, 2010 - 7:32 pm
@normal
What Poland wants for its neighbours is freedom of choice.If they want to buy gas from Russia and live in fear of winter gas cut-off its ok but if others want to choose a different gas supplier its ok too but to do so they need infrastructure in this case LNG and interconnectors.Nord Stream would together with South Stream totally monopolise import of gas.There would be only one supplier u do the maths.And can you describe more clearly who was pushed into the margins and where cos i dont get it at all..
#12 by Petr on September 16, 2010 - 8:33 pm
I love the hypocrisy. You get so worked up over Poland’s engagement with the US (which btw, is part of the same defense alliance as Germany, Italy and even France ), yet you have no problem with Germany playing behind the backs of its allies with hostile Russia.
#13 by normal on September 17, 2010 - 10:31 pm
@Piotr
Poles have not learned from their own history because these now independent countries (Ukraine, Belarus, Lithuania, Czech) view this with suspicion. It is nothing new as Poles have been saying the same thing for 200 years. Anyway, is Poland a reliable partner? Why did she participate in the dismemberment of another country (Serbia)? Whose interests does that serve?
#14 by Petr on September 19, 2010 - 1:23 pm
Who views what with suspicion? None of the countries you mentioned has any problem with Poland’s LNG terminal… unlike Nord Stream where the intent is obvious.
And can you please speare us revisionist views on Serbia’s “dismemberment”?
Where have you been during the first decade of Balkan wars when Serbia was starting one war of agression after the other against its neighbors? Slovenia, Croatia… They reaped what they sowed.
Had Milosevic got his a$$ kicked as soon as 1991 or 1992 when Europe just stood and watched from the sidelines things like Srebrenica happening in the middle of the continent things maybe did not have to end up the way did.
#15 by Meson on September 21, 2010 - 12:19 am
@normal
“because these now independent countries (Ukraine, Belarus, Lithuania, Czech) view this with suspicion”
How wrong. If you read some official statements, Visegrad group (Poland, Hungary, Czech Republic, Hungary) and Baltic states (Lithuania, Latvia, Estonia) plus other states (Romania etc) are having exactly the same objections to Molotov-Ribbentrop pipeline and basically support Polish LNG port and other alternative gas routes. That’s some “marginal” 100 millions of EU citizens – who are neither French or German, therefore they don’t count of course. Objections to Nord Sream are backed by facts, namely the gas crisis in 2009 and Russian official statements about using gas supply as a tool in its foreign policy. France and Germany want to have their “Strategic partnership” with Russia, basically marking Russia as much more important than other EU member states and regions, which utterly violates principles of EU solidarity. By such exclusive support of an nondemocratic state and its policies, France and Germany’s approach also undermines EU credibility as supporter of freedom and democratic values. I also do not understand why Germany and France are so ostensibly anti-American, while both are in NATO and given that USA guarded them all the time when Russian threat was close to their borders… World is full of hypocrisy.
#16 by Meson on September 21, 2010 - 12:53 am
well… EU is so divided now… and I just hope EU will stick back to its values.
#17 by Piotr on September 21, 2010 - 3:40 pm
@normal
Poland is actually learnig from its own history. The lesson is that neither Germany nor Russia and any other western European country are reliable partners. Central Europe is strong only when we are together. Countries in our region are lookin with suspicion only at Nord Stream and policy behind it. Lately we could read in media that Nord Stream have rejected any possobility that the pipe will be dig in the seabed! Poland was asking for it becouse if it will not be done it will be impossible to develop Polish LNG port in Szczecin to its full potential (bigger ships will not be able to get into the port). Where are the so called good relationships between Poland and Germany governments? So called european solidarity? How Polish neighbours percieve LNG is clearly shown i.e by Czechs who are already building interconnectors with Polish pipes system, Romania and Hungary who are building their own LNG in Romanian coast with supplies from Azerbaijan. PS I dont think that Serbia case have anything to do with that subject but decision top recognize Kosovo was made by one political party.Party who is even scared to ask for international investigation about death of Lech Kaczynski and other victims of a plane crash, what can u expect from people like that.It clearly does not show whole Polish political enviornement attitude towards Serbs and Albanians.
#18 by Jan, Pardubice, CZ on September 22, 2010 - 2:31 pm
No offence, but what you wrote is a total nonsense. The “Visegrad 4″ (CZ, SK, PL, HU) is very much on the same page and in mutual agreement when it comes to energy security of the region and implications of the Nord Stream for it. The reason why they are against it is certainly NOT because of few pennies in lost revenues from transit fees but because much more is at stake. My guess is that Baltic countries are seeing the big picture of Nord Stream as well. After all, Lithuania was the first country to experience Russian “pipeline diplomacy” when Gorbachev shut down the oil pipeline and drastically reduced gas supplies to Lithiuania in the spring of 1990, trying to “convince” them not to secede from the USSR.
Poland’s LNG terminal in no way jeopardizes energy security of its neighbors.
Hopefully if any lesson is to be learned from the pre-WW2 history is that stupid and petty bickering between countries like Poland and Czech(oslovakia) is just for the detriment of all in the region.
#19 by igor on September 22, 2010 - 5:26 pm
mentioning Serbia as an aggressor in Balkan wars shows typical ignorance about the events during 90`s.
#20 by Wojciech Kornacki on September 25, 2010 - 4:39 am
The ultimate question is what is EU’s energy policy? Is it green, independent, and in the spirit of solidarity, or is it same old. Germany is taking the easy route, which also makes it more dependent on Russia, less green, and dividing the EU.
Instead of influencing other EU members, Germany decided to go at it alone. It is also not suprising that the previous German Chancellor also supported the idea of the Ribbentropp-Molotov pipeline. Any political disagreement between Poland & Russia has not affected deliveries of energy to the rest of EU.
The difference between German and Polish approach to the energy policy, in this case, is that Poland actually seeks energy independence, and Germany allows Russia extend its influence over EU via Russian gas.
Marco is wrong. EU was not built on bigger countries controlling the rest- the opposite is the case. EU was build on an economic union where all European countries worked together to increase their efficiencies. What Germany is doing is undermining this, and continuing pre-EU political and economical relationships.
Orientation of EU should focus on reliable, democratic parterns, and balanced between different countries. Overreliance on one country for energy supplies is detrimental to the entire EU and undermines EU’s energy policy.
#21 by dreamer on September 26, 2010 - 11:19 pm
EU should be ruled by the wisest.
How do you recognize the wisest?
The wisest are those that are most successful, i.e. Germany.
Who are the least successful? Poles. They should have the least influence on EU. Postings of Piotr and Wojciech confirm that the above is a good idea.
#22 by Manuel on September 27, 2010 - 3:36 pm
Dear Piotr,
Yes, Realpolitik – within the rule of law. That is the way it has usually been since the end of the Second World War.
Germany is bigger and more powerful and therefore more influential than Poland. These are the facts you must adjust to. It is neither good nor bad but simply the way it is.
The truth is eastern and central Europe entered the EU and have been penetrated by the economic power of the west: Germany, France, Holland, US etc.
The elites in your countries knew very well that was the price to pay – nothing is for free.
#23 by Meson on September 28, 2010 - 5:10 am
@dreamer your magnificent argumentation actually supports rule dictators, because they are certainly the most successful in their despotic countries, right? Anyway, If we look how fast countries grow in the last 20 years, China, Vietnam and Poland are the most successful in the world (http://en.wikipedia.org/wiki/List_of_countries_by_GDP_growth_1990%E2%80%932007)
#24 by thecapital15 on June 14, 2011 - 8:11 pm
well energy crisis in the whole world is getting very severe and its good to see that some governments have brains and they are using them. Instead of relying more on Atomic energy outlets,, they are relying more on natural resources… Good to see Germany working over it and going over board by putting up with such a large project,, all other governments should follow suit.