Germany freezes Nord Stream 2 gas project as Ukraine crisis deepens-UPDATED

Germany freezes Nord Stream 2 gas project as Ukraine crisis deepens-UPDATED
# 22 February 2022 19:45 (UTC +04:00)

Germany on Tuesday halted the Nord Stream 2 Baltic Sea gas pipeline project, designed to double the flow of Russian gas direct to Germany, after Russia formally recognised two breakaway regions in eastern Ukraine, APA reports citing Reuters.

Europe's most divisive energy project, worth $11 billion, was finished in September, but has stood idle pending certification by Germany and the European Union.

The pipeline had been set to ease the pressure on European consumers facing record energy prices amid a wider post-pandemic cost of living crisis, and on governments that have already forked out billions to try to cushion the impact on consumers.

But on Tuesday the European benchmark gas price, currently the Dutch March contract , was up 10% to 79.28 euros per megawatt hour (MWh) at 1416 GMT, much like the price for the fourth quarter , when Nord Stream 2 had been expected to start.

Dmitry Medvedev, Russia's former president and now deputy chairman of its Security Council, tried to rub salt in that wound.

"Welcome to the new world where Europeans will soon have to pay 2,000 euros per thousand cubic metres!" he tweeted - suggesting prices were set to double.

*** 15:17

Germany orders withdrawal of key document needed for certification of Nord Stream 2 gas pipeline from Russia, APA reports citing ABC News.

German Chancellor Olaf Scholz has said that his contacting the country's regulator is a "necessary step" to suspend the certification of the Nord Stream 2 gas pipeline.