ABSTRACT
Despite the geopolitical turmoil that has engulfed Russia’s relations with the West since its aggression in Ukraine beginning in 2014, the German–Russian gas relationship has proceeded unencumbered, culminating in the contentious Nord Stream 2 pipeline. This project has sparked vociferous debates in Germany, the European community, and among Europe’s transatlantic partners, out of fear of Russian energy supply manipulations. The pipeline is unlikely to have a negative effect on Germany’s or the European Union’s energy supply, nor will it seriously jeopardize Central and Eastern European (CEE) gas transit revenues. Due to the interdependence between Berlin and Moscow created by pipeline exchanges, significant investments in liquified natural gas (LNG) infrastructure, reverse-flow and gas storage capabilities, and a changing regulatory and market environment, the probability of politically motivated supply interruptions are limited. Furthermore, increased integration of the European gas market as well as continued investment in LNG infrastructure and storage capacity will diversify the energy portfolio of CEE countries, reducing their reliance on gas transit fees from Russia into Europe. This chapter argues that Nord Stream 2 represents a new Ostpolitik with Russia, offering the opportunity for further strategic partnerships that will lead to peace and cooperation on the European continent.
