Conflict between Western Europe and US over Russian pipeline

Angela Merkel

There is a greater likelihood of an economic conflict breaking out between Europe and US over the Nord Stream 2 gas pipeline project with Russia. Fearing that the project would result in increase Russia’s influence in Europe, the Trump administration has threatened Germany of harsh economic sanctions if Berlin proceeds ahead with the Nord Stream 2.

United States main aim is to counter Russia and China that have flooded the global markets with cheap products and for this President Donald Trump has turned on tariffs plan as a part of his economic agenda but in the process, it is hurting American allies.

The Nord Stream 2 pipeline is projected to deliver 55 billion cubic meters of Russian natural gas annually from newly tapped reserves in Siberia across the Baltic Sea to Germany, bypassing Ukraine.

German Chancellor Angela Merkel discussed US criticism of the pipeline project due to the transit route through Ukraine with President Vladimir Putin during a meeting in Sochi, Russia, on Friday.

Merkel said, “The question of what sort of guarantees can be offered to Ukraine in the industrial project of Nord Stream 2.”

Meanwhile, U.S. Senate and House of Representatives, as well as the White House, has been opposing Russia’s gas export monopoly Gazprom PJSC from completing the Nord Stream 2 link under the Baltic Sea and is in favour of imposing sanctions on Germany to prevent it.

Sandra Oudkirk, U.S. Deputy Assistant Secretary of State for Energy Diplomacy, said in Berlin that Washington is concerned about Nord Stream 2 that could increase Russia’s “malign influence” in Europe. “There are security issues linked as Russia could install undersea surveillance equipment in the Baltic Sea, a sensitive military region.”

The United States is opposing the project as it seeks to export its own LNG to Europe.

Germany is switching off coal and all nuclear plants by 2022 and making gas the only fuel to be used to fulfill the country’s pledge to sharply reduce carbon emissions and it also promises much-needed jobs in Berlin.

Some of the most vocal critics have been the Baltic states of Estonia, Latvia and Lithuania, whose foreign ministers traveled to Washington last week to meet Secretary of State Rex Tillerson.

Russia annexed the Crimean peninsula in 2014 — prompting EU sanctions in response.

The Trump administration has announced that it is giving Europe 30 days to strike a deal with the US that would limit the amount of steel and aluminum it exports to the US. If no deal is struck, the US will initiate a 10 percent tariff on Europe’s aluminum exports and a 25 percent tariff on its steel exports to the US.

European Commission President Jean-Claude Juncker threatened to put tariffs on goods like blue jeans, bourbon, and Harley-Davidson motorcycles in response to Trump’s move. That could decrease demand for those products and lead to US workers losing their jobs.

Acknowledging that America  is facing the re-emergence of great power competition among the US, Russia and China, the US Department of Defence considers the 2018 Nuclear Posture Review (NPR’s) analysis and recommendations are grounded in a realistic assessment of today’s strategic environment.

Army Secretary Mark T. Esper said the U.S. military must be prepared for a high-end fight as these evolving challenges reflect the changing character of war. “We are entering an era where our forces will be under constant observation, disrupted communications – if not nonexistent communications,” he said.

The 2018 review takes all the challenges under consideration and maintains the traditional deterrence strategy to shape potential adversaries calculations, with some tweaks to ensure there is no miscalculation of America’s intent.

By Arti Bali,
arti

(Senior Journalist)

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