On this eve of the Russia- Ukraine War, Nord Stream 2 is recently seen in the news. The USA has also said that it will stop the Nord Stream if Russia attacks Ukraine. European countries, led by Germany, initially imposed sanctions on the Nord Stream due to its importance

What is Nord Stream?

Nord Stream consists of two pipelines, is Nord Stream 1 and Nord Stream 2. Nord Stream 1 was completed in 2011. It connects Vyborg in Leningrad in Russia to Lubmin near Greifswald in Germany.

Nord Stream 2 is the longest subsea pipeline, which runs under the Baltic Sea carrying gas from Russia to Europe.  It is from Ust-Luga in Leningrad to Lubmin. It was completed in September 202. 

The pipeline connects to the OPAL (Baltic Sea Pipeline) and NEL (North European Pipeline) in Germany, and it further connects to the European grid. These two pipelines can transport a total of 110 billion cubic metres of gas a year to Europe for at least 50 years. 

Importance

It is considered that Europe requires more than 100 billion cubic metres of natural gas each year, of which  40% of its gas comes from Russia. It is difficult for Europe to reduce its dependence on Russia since there are no easy replacements.

There is a huge pressure on European governments from businesses since many European businesses have large investments in Nord Stream 2. The reduction in gas imports from Russia will increase the gas price in Europe. Russia has the largest natural gas reserves in the world. Around 40% of Russia’s budget comes from sales of gas and oil. Through  Nord Stream 2 Russia gets more direct access to the European gas market.