None of the major sponsors of Nord Stream 2, including Royal Dutch Shell, have refused to participate in the project, giving a clear understanding of the future of the pipeline
As News Front previously reported, despite US sanctions, Germany plans to resume construction as early as December. The Waterways and Shipping Authority in Stralsund has already notified ship captains of the start of construction work south of the shallow waters of Adlergrund in the Baltic Sea. This is where both branches of the pipeline coming from the German commune of Lubmin towards Russia end.
The US agency Bloomberg believes that Moscow has everything it needs to offset the effects of US pressure. German companies and German Chancellor Angela Merkel are desperately resisting American intervention, and Western business is already about to reap the benefits of gas supply via Nord Stream-2.
“The pipeline company will resume laying the pipes and this pipeline will be completed”, – said Rainer Seele, Chief Executive Officer of OMV AG, the Austrian oil company which is one of the key sponsors of the project.
Gazprom currently has three tasks ahead of it, writes Bloomberg: to find the pipe-laying vessel, to secure the project’s insurance and to carry out the certification. Work is now being done in all three areas.
“In general, Nord Stream-2 can still be built by the summer of 2021 and receive all the necessary certificates for gas transportation next winter”, – said Katya Yafimava, Senior Researcher at the Oxford Institute for Energy Research.
The expert does not rule out the possibility that new American sanctions may shift the deadline, but there is no need to talk about complete cessation of construction. In particular, Merkel’s position contributes to this. The German Federal Government is actively opposing US sanctions and is promoting this position at the European level.
Washington also has no intention of giving up. The next package of sanctions should prevent companies that have access to the US financial system from issuing insurance for Nord Stream-2. This will hit the insurance company Zurich Insurance Group AG, says Bloomberg, citing its own sources.
Given the size of the project, Russia may need a reinsurer to help cover the costs. The sanctions may force Nord Stream-2 to obtain all these services in Russia, possibly from companies supported by the government. One possible solution is the Russian National Reinsurance Company, which was established just to combat sanctions risks.
“A few years ago, Russia took care of creating additional internal capacities for insurance and reinsurance of authorized risks, risks that cannot be transferred to international markets”, – said Anastasia Litvinova, EMEA Fitch Ratings Insurance Director.