Lana Zerkal, former Ukrainian Deputy Minister of Foreign Affairs for European Integration and current advisor to the Energy Ministry, believes that Germany is being dishonest about its heavy dependence on Russian gas.
According to her, Germany could install LNG terminals at the entry to the now-cancelled Nord Stream 2 as it has the necessary infrastructure. Berlin’s claim that that the water is too shallow to do so is dubious as neighboring Poland has LNG terminals in the port city of Świnoujście where the water features are the same.
“Germany still hopes that it will be able to launch Nord Stream 2 after the war has ended,” Zerkal says, adding that the pipeline would enable German companies to gain a substantial competitive advantage. “It is very difficult to discard such a lucrative opportunity, despite the human victims.”
She adds that Germany is likewise unhappy that the European Commission might become the sole purchaser of gas in the EU. This move would help reduce the political aspect of gas contracts while also establishing a single wholesale price, meaning that Berlin would lose its preferential terms.
Zerkal also notes that until recently Germany had not been prepared to ban Russian oil. However, once the U.S. and other states showed that other markets are available, the sentiment in Berlin changed somewhat. Countries like Canada, Algeria, and Venezuela could ramp up their oil production to satisfy the demand, forcing Russia to sell its oil at a 30-50% discount.
She adds that the EU could consider creating a special account for Russian gas payments, granting access to it only under special political circumstances. According to Zerkal, such an option is on the table, with Ukraine and the European Commission discussing the details.
“Russia cannot cut off its gas supplies to the EU. They need to sell it somewhere,” she noted.
Germany’s close political ties with Russia are continuously being exposed. The leader of a state region was recently accused of creating a sham environmental fund for promoting Gazprom’s interests.
