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Merz backs Nord Stream ban to prevent US and Russia restarting gas link

by Investor News Today
May 23, 2025
in Commodities
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Merz backs Nord Stream ban to prevent US and Russia restarting gas link
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German chancellor Friedrich Merz is “actively” backing a proposed EU ban on the Nord Stream pipelines connecting Russia to Germany in a bid to cease any US and Russian efforts to reactivate the fuel hyperlinks.

Merz’s authorities earlier this week stated it endorsed the ban as a part of the bloc’s upcoming spherical of sanctions in opposition to Russia for its battle in Ukraine. Based on three officers conversant in the matter, the chancellor sought to quell any home debates in regards to the deserves of a possible reactivation.

Studies within the Monetary Instances in March about Kremlin-linked Russian and US enterprise folks in search of to restart the privately owned pipelines prompted Merz to start out discussions with officers in Berlin and Brussels about how you can stop that, one of many folks stated.

Including Nord Stream to the EU sanctions checklist “probably removes a political downside for him”, they stated.

The punitive measures are additionally a manner for Merz to “Europeanise” the destiny of the pipeline, as an alternative of Berlin dealing with up potential US and Russian strain by itself, one other official stated.

Whereas it has no state management over any of the 4 pipelines at the moment disabled after explosions broken three of them in 2022, Berlin must grant a certification for any activation of the fuel hyperlink.

The EU restrictions would goal Nord Stream 2 AG, the Switzerland-based entity that owns the pipelines, and every other firms — Russian or in any other case — which might be essential for its restart and operation, folks conversant in the plans informed the FT.

European Fee president Ursula von der Leyen final week talked about Nord Stream as a part of the “new package deal of sanctions” her group was engaged on. She made these remarks having first consulted with Merz, who gave his assist for the transfer, in keeping with an individual conversant in the discussions.

The fee was set to start formal discussions with EU governments this weekend, the folks added. They’ll solely be adopted with the unanimous assist of all capitals.

A brainchild of former chancellor Gerhard Schröder, who had shut relations with Putin and was later employed by Kremlin-backed Gazprom, Nord Stream was as soon as an emblem of the deep financial ties between Russia and Germany.

Even earlier than Moscow launched its full-scale invasion of Ukraine in 2022, the hyperlink was a bone of competition between Berlin and Washington, with the primary Trump administration urging then chancellor Angela Merkel to cut back her nation’s vitality dependence on Russia.

Matthias Warnig, a former Stasi spy and shut good friend of Putin, has mentioned a restart of the pipeline with the backing of US buyers, folks with information of the talks stated beforehand. Warnig was in search of to leverage US President Donald Trump’s want for financial rapprochement with Moscow, they stated.

“It’s appropriate that the chancellor actively helps sanctions in opposition to Nord Stream 2,” a authorities spokesman stated, including: “One of many goals of our sanctions is to chop off Russia from revenues that could possibly be used to finance its battle of aggression in opposition to Ukraine in violation of worldwide regulation. This contains revenues from the export of fossil fuels.”

Trump’s efforts to barter a settlement with Russia over Ukraine have rekindled a debate in Germany over Nord Stream and Russia fuel, which accounted for greater than half of German fuel imports earlier than 2022.

A survey by Forsa discovered that 49 per cent of residents of Mecklenburg-Vorpommern, the German state the place Lubmin, the pipeline’s terminus, is positioned, have been in favour of resuming Russian fuel provides.

The far-right Different for Germany, which has secured greater than 20 per cent of the votes nationwide in February elections, has referred to as for bringing the pipelines again on-line because the Eurozone’s largest economic system grapples with excessive vitality costs and stagnation.

This view is shared by some enterprise leaders and politicians from Merz’s centre-right Christian Democratic Union (CDU) and his centre-left coalition companions, the Social Democrats. The Inexperienced opposition has blamed remnants of the “Moscow connection” inside Germany’s mainstream events.

In March, Michael Kretschmer, the CDU prime minister of the east German state of Saxony, stated that sustaining punitive measures in opposition to Moscow was “fully old-fashioned and doesn’t match in any respect with what the People are doing proper now”.

Responding to stories by the FT and others about Nord Stream, CDU MP Thomas Bareiß in a LinkedIn publish saluted “how business-minded our American associates are”.

Dietmar Woidke, the SPD prime minister of the east German state of Brandenburg, referred to as for a normalisation of Germany’s commerce relations with Russia after a peace settlement.



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