Nord Stream gas pipe opens

[RedRalph]

http://www.bbc.co.uk/news/world-europe-14803065

Russian Prime Minister Vladimir Putin has pressed the start button to open a pipeline carrying natural gas directly to Germany under the Baltic Sea.

He said the Nord Stream pipeline would reduce Russia's dependence on Ukrainian pipelines, which were shut during gas disputes between Moscow and Kiev.

"Technical gas", needed to build up pressure, was released on Tuesday.

It is expected German consumers will begin receiving Russian gas through the new pipeline in a few weeks.

The official launch of Nord Stream will be marked with a visit by Russian President Dmitry Medvedev to Germany in November.

Nord Stream, a twin pipeline, was built at a cost of $12.5bn (£7.7bn; 8.8bn euros) and is 1,224km (761 miles) long, running from Vyborg in north-west Russia to Sassnitz in north-east Germany.

It should be able to move 55bn cu m of gas a year by 2013, after the completion of the second pipeline.
'Civilised relations'

Mr Putin, visiting Vyborg, said Ukraine had been "taking advantage", and that relations between the two countries would now become "more civilised".

At present, 80% of Russia's gas exports to the EU flow through pipelines across Ukrainian soil.

Apart from Nord Stream, Russia has been planning another pipeline, South Stream, which will run from southern Russia to Bulgaria under the Black Sea.

The project is expected to pipe 63bn cu m of gas to central and southern Europe annually.

In another project to pipe ex-Soviet gas westwards, Turkey, Romania, Bulgaria, Hungary and Austria have agreed to construct a 3,900km pipeline called Nabucco.

It is expected to pump up to 31bn cubic metres of gas annually from the Caspian and the Middle East across Turkey and into Europe.

So, think this will give Russia more influence over Germany? Germany over Russia? Help out relations between Brussels and Moscow?

 

[amadeus]

Europe wants gas, Russia wants cash. Everybody wins.

As for power politics, is Russia really that interested in hegemony over Europe? They couldn't even do that at the peak of Soviet power, let alone the Russian rump state.

 

[Silurian]

It will give Russia more influence over Ukraine.

Now Ukraine can not take gas if they do not like a price hike.

 

[Winner]

Europe wants gas, Russia wants cash. Everybody wins.

As for power politics, is Russia really that interested in hegemony over Europe? They couldn't even do that at the peak of Soviet power, let alone the Russian rump state.

Hegemony over Europe is unattainable. Hegemony over parts of their former empire (Ukraine, Belarus) is much more achievable, and this pipeline is a step towards getting there.

Fortunately, Russia needs Europe even more than Europe needs Russian oil and gas, so at present things are in balance. Unless Europe screws up big time, Russian options in exploiting gas and oil supplies as a tool of extortion will remain very limited.

 

[Oruc]

Fortunately, Russia needs Europe even more than Europe needs Russian oil and gas, so at present things are in balance. Unless Europe screws up big time, Russian options in exploiting gas and oil supplies as a tool of extortion will remain very limited.

Isn't that the opposite of balanced

 

[Cheezy the Wiz]

Power is only balanced when it's in your favor.

 

[Winner]

Power is only balanced when it's in your favor.

Precisely.

 

[Dachs]

Power is only balanced when it's in your favor.

This is why I don't understand how there can be a "theory" of the balance of power, or how it can be a meaningful concept.

 

[Ayn Rand]

Hello cheap Russian Energy

 

[kronic]

So, think this will give Russia more influence over Germany? Germany over Russia? Help out relations between Brussels and Moscow?

Russia over Germany? Probably not, unless the the total amount of gas sold to Germany rises significantly. It has to be admitted though that Germany and large parts of Europe already are very dependent on Russian gas and oil. That's pretty much unavoidable as there are not many suppliers in Europe's neighbourhood (North Africa, Middle East, Russia and neighbours). I'm not really worried about it though since I think that the German and Russian economies can benefit a lot from eachother. I expect closer cooperation between both countries to the benefit of both. It makes a lot of sense in economic and strategic terms.

When talking about potentially rising Russian influence we should consider something else. The new pipeline enables Russia to bypass Eastern Europe in order supply Germany and Western Europe. Given the frequent tensions between Russia and Eastern Europe over gas in recent years, the Russians may use that to their advantage.

 

[red_elk]

Russia is getting direct pipeline to the most reliable and important customers and now it is becoming less dependent on unstable transit countries. I'd say the situation is getting more balanced

 

[Verbose]

There always was A balance. This shifted things around a bit. There's still A balance. But this is an infrastructure upgrade which mostly improves Russian control and options about when and where to pump.
The old Soviet infrastructure might be due an upgrade. If not having to use Russian gas is high enough a priority, there are things all these nations can do about it. The Nabucco pipeline, which Russia does not control, should perhaps get priority in the former Eastern Bloc countries of the EU still hooked to the old Soviet infrastructure. Options seem essential, not least if we're really supposed to think of this as just ordinary "market" relations.

And I write this coming from someplace which got entangled in the whole NordStream thing for reasons of geography, but not from interest in Russian gas. Just generally speaking, energy supply is a highly political matter for all nations.

 

[Cheezy the Wiz]

This is why I don't understand how there can be a "theory" of the balance of power, or how it can be a meaningful concept.

It's not an idea I disapprove of, per se, merely something I was pointing out. Dare I say it's expected, by any party.

 

[Winner]

This is why I don't understand how there can be a "theory" of the balance of power, or how it can be a meaningful concept.

It's rather easy to understand, actually. In so far as neither side believes it can upset the existing balance of power in order to improve its position, it has a stabilizing effect on international relations. The concept of balance of power doesn't necessary mean that the power of the two (or more) sides is equal.

 

[GoodSarmatian]

I don't want to hijack this thread, but balance of power only really worked during the cold war and this was more thanks to nukes. Without MAD keeping both sides in line, imperfect information and the security dilemma usually prevent the perception of balance.

On topic: I'm not sure if Europe needs Russian gas more than Russia needs European money.
It was recently announced that Germany now generates 20% of it's energy from renewable sources, but our governments recent flip-flop on nuclear power definitely works in Russia's favor.
If we can stabilize Northern Africa in general and Lybia in particular, and strengthen our influence there, it will mean more competition for Russia. And there's always the possibility that Desertec might actually go somewhere and work.