Russian ships will complete Nord Stream 2 pipeline without European help

RT
Mon, 23 Dec 2019 11:27 UTC

© Global Look Press

Pipelay onboard the Pioneering Spirit

Russia says the Nord Stream 2 gas pipeline will be finished despite all the challenges, after Swiss-Dutch company Allseas decided to stop its works on the project in the Baltic Sea, under the threat of US sanctions.

Over the weekend, the engineering company reportedly withdrew its ships, which had been engaged in the laying of the last section of the pipeline. The pull-out occurred shortly after US President Donald Trump signed into law the 2020 National Defense Authorization Act, which provides for harsh sanctions on foreign contractors involved in the project.

However, two of Allseas' vessels - Solitaire and Pioneering Spirit - were still in the waters of the Baltic Sea as of Monday morning, according to ship tracking website Marine Traffic.

"Despite all of the factors that have been working against the project, we expect the Nord Stream 2 pipeline to be completed soon," Energy Minister Alexander Novak said in an interview with Russia's RBK broadcaster. The minister doubts that the US restrictions can fully stop the project, as it is already in the final stages and any fines or punitive measures from the US would cause discontent among its allies.

© Nord Stream AG/Gazprom

Solitaire • Akademik Cherskiy

Russia has replacement vessels, but here is a catch

If Allseas decides to completely pull out of the project, Russia has a possible alternative to finish laying the multibillion underwater pipeline, which aims to ensure gas supplies to Europe. However, this could push back the eventual launch of the Nord Stream 2.

For example, Russian company MRTS has at least three pipelaying barges - Fortuna, Defender and Kapitan Bulagin. The former has been considered the main hope if the US actions spook Russia's partners. The ship was added earlier this year to the list of vessels that can participate in the construction works.

Using one of those three ships could result in additional hurdles as they don't have the dynamic positioning capabilities required by Denmark. Thus, they may be not allowed to work in the Danish section or Russia would have to get additional permits for them. This could be a tough task, given that Copenhagen delayed until the end of October the granting of permission to even start pipelaying works in its waters.

Another option could be the Akademik Cherskiy, a vessel owned by Russian energy major Gazprom. The pipelayer has all the necessary technical capabilities, including dynamic positioning, but it is currently stationed in Russia's Far East and would take up to two months to get to Danish waters.

Comment: RT, 23/12/2019: NS2 will become operational in 2nd half of 2020

The $11-billion pipeline, which extends from Russia to Germany across the bottom of the Baltic Sea, will be finished "in the second half of the next year," Peter Beyer, the government's Coordinator of Transatlantic Cooperation, told Deutschlandfunk radio station on Monday.

Some in US-Russian business circles agree with the standpoint. "It's obvious that the project will be finalized," Alexis Rodzianko, the president and CEO of the American Chamber of Commerce in Russia, told RIA Novosti.

"Therefore, the sanctions look more like an expression of discontent, I don't think that they [the US] can somehow stop it. If some fines or penalties are to follow, they will be very unpopular among us allies."

RT, 23/12/2019 US Sanctions on pipeline a declaration of 'economic war' that will backfire on American business interests

It may be "quite favorable for Russia" to finish the Nord Stream 2 construction by itself, says German business newsletter publisher Dr Eike Hamer, as European companies participating in the project are targeted by US sanctions. The costs of completing the pipeline will definitely be much higher after the Swiss-Dutch company Allseas announced it is quitting the project. The delay could be a few months but what's "more important is that the pipeline is going to be finished."

According to the economist, the Russian energy major Gazprom, which is leading the Nord Stream 2 project, could "surely" sue European companies for winding up operations "unless it was excluded in the contracts."

"The sanctions and promises for additional contracts by the Russians could be much more favorable and be a better deal for Allseas than the US sanctions, which are against international law."

"Afterwards, all costs can be saved from sending less oil and gas via the US-puppets Poland and Ukraine, or increase local taxes on US oil firms in Russia or Anglo-American shareholders of Russian companies. In the end, benefits will overwhelm the costs in the project by far."

"This is an economic war the US has started already." The Russian gas pipeline "will cause inconvenience but not a severe problem."

"The problem arises for the Anglo-American forces that made up the sanctions because they will be regarded as a difficult and dangerous business partner. Who trusts an Anglo-American firm in future when you never know if you are sanctioned, threatened of not completing your work? In that sense the US has much more to lose than the rest of the world."

Russian Prime Minister Dmitry Medvedev has ordered the Cabinet on Monday to think over Russia's possible response to Washington's sanctions against the Nord Stream 2 project.

See also:

• Bully at work: Firm laying Nord Stream 2 pipeline halts activity faced with 'crushing' US sanctions
• German MPs in uproar over US' Nord Stream 2 sanction threats, call for retaliation
• Putin: Russia won't stop gas transit through Ukraine when Nord Stream2 becomes operational