Pipes at the onshore facilities of the Nord Stream 1 gas pipeline in Lubmin, Germany, on March 8. HANNIBAL HANSCHKE/Reuters
German Chancellor Olaf Scholz says Prime Minister Justin Trudeau has called the Kremlin’s bluff by allowing Canadian-repaired Russian pipeline turbines to be returned to Moscow-controlled state-run Gazprom, saying the move removes the pretext for Vladimir Putin to cut or stop natural gas supplies to Europe.
Ottawa sidestepped its own sanctions against Russia in last month’s decision, drawing sharp criticism from Ukraine for what it described as caving in to Moscow’s blackmail.
However, Mr. Scholz defended Mr. Trudeau and told The Globe and Mail that he considered criticism of the prime minister and his government on the matter to be “totally unfounded.”
He also said he would welcome LNG supplies from Canada as Germany works to reduce its dependence on Russian energy.
In June, Gazprom cited the delayed return of natural gas turbine equipment that Siemens Energy serviced in Montreal as the reason it decided to cut the flow of natural gas through the Nord Stream 1 pipeline, which serves Germany, to 40 percent gas. cent capacity. The majority shareholder in Nord Stream 1 is Gazprom, and the majority owner of Gazprom is the Russian government.
Putin’s games are threatening to hit the gas. Will European solidarity survive?
The first turbine blocked by sanctions in Canada has already been shipped back to Germany, but has not yet been delivered to Gazprom’s operations in Russia.
Following the Trudeau government’s July decision, Russia cut gas supplies through Nord Stream 1 to 20 percent, again blaming the delayed turbine. As early as July 29, Gazprom was also complaining that the maintenance of this turbine was not in accordance with the contract.
German cities have already started imposing energy-saving measures. Some turn off the spotlights on the monuments and close the fountains. And Hanover is one of the first major cities to turn off hot water in public buildings.
The House of Commons Foreign Affairs Committee is holding hearings on the Russian turbines on Thursday and has called Foreign Affairs Minister Melanie Jolie and Ukraine’s ambassador to Canada, Yulia Kovaliv, to testify.
Mr. Scholz said Berlin’s ambassador to Canada, Sabine Sparwasser, would also testify and explain Germany’s position on insisting that Canada return the turbine and service other Gazprom equipment.
Mr. Trudeau explained his actions by saying he did not want punitive rules aimed at the Putin regime to contribute to Europe’s energy crisis and hurt natural gas consumers in countries like Germany.
Mr. Scholz, in response to written questions from The Globe, said the prime minister’s “firm decision” to release the turbine eliminated an excuse that could be used by the Russian president to justify cutting natural gas supplies to Germany and other European countries. The July deal struck by the federal government includes allowing the import, repair and export of multiple turbines between now and 2024.
“Thanks to Prime Minister Trudeau, we were able to call off Putin’s bluff. We have never believed that the reduced supplies had technical reasons,” Mr. Scholz said. “With the turbine ready for delivery, it is up to Russia to resume its contractual obligations.”
The turbines are vital components of the Nord Stream 1 gas pipeline’s compressor stations, which maintain pressure in the pipeline as it transports gas from Russia under the Baltic Sea to Germany.
The German leader said Russia was trying to divide the allies by blaming the turbine delay for reduced gas supplies.
“Russia is trying to exert pressure and turn one ally against another,” Mr. Scholz said, adding that this must not be allowed to succeed.
Germany’s Siemens Energy was servicing the turbine at its Montreal facilities when Ottawa imposed sanctions to punish Russia for its war on Ukraine. At Germany’s insistence, Canada approved a sanctions authorization that operates as an exception and allows the import, repair and export of up to six Nord Stream 1 turbines to Canada over the next two years.
Ottawa’s July 9 decision on the turbine equipment was also supported by the administration of US President Joe Biden, who called it the right move as it will allow Europe to increase its natural gas reserves for the cold winter months ahead.
“If Moscow decides not to fulfill its contractual obligations, let it be crystal clear to the whole world. Thanks to Canada, that will now be the case,” Mr. Scholz said. “By now, this is a well-known game: Russia wanted to cut off gas supplies and blame our sanctions regime for the outcome.”
President Volodymyr Zelensky and the Ukrainian government sharply criticized Ottawa’s decision, saying it set a dangerous precedent that would encourage Mr. Putin to continue using energy as a weapon.
Critics, including the Ukrainian-Canadian Congress, said Ottawa’s decision to create a loophole in its sanctions undermined sanctions against Russia for its full-scale military assault on Ukraine.
The Ukrainian World Congress (UWC), an advocacy group representing Ukrainians abroad, announced a legal challenge to the decision in the Federal Court of Canada.
The German chancellor said that Western sanctions against Russia are increasing, not decreasing.
“I consider the criticism against Justin Trudeau and his government to be completely unfounded. The decision to deliver the turbine is hardly a favor to Gazprom,” Mr Scholz said.
“This is a strong signal of support for Germany and for Europe and for maintaining solidarity among close allies to maintain long-term support for Ukraine.” How will the weakening of Germany and Europe help Ukraine?
Mr Scholz said Western sanctions should not punish Europe and noted that for the most part they work to cripple Russia. “Russia’s manufacturing capabilities are declining rapidly, its economy is in recession and its access to critical goods is severely reduced,” he said.
Ukraine claims that Germany could have received natural gas supplies from the Gazprom pipeline, which runs through Ukraine.
“Why will Russia supply more gas through Ukraine? I don’t believe that would happen,” Mr Scholz said.
Asked why Germany remained dependent on Russian natural gas when the United States warned years ago that Mr. Putin could weaponize energy supplies, Mr. Scholz noted that his country and others in Europe have been buying the fuel from Russia for decades. He recalled that there was a time when the countries hoped that Moscow would be a constructive player on the international stage.
“But still: I don’t want to deny that we have relied too long and too unilaterally on energy supplies from Russia. Today we are living in a different reality and we are adapting quickly,” he said, noting that Germany will stop importing Russian oil by the end of the year.
“Gas is the hardest part, but the share of Russian gas in our imports has dropped rapidly, in just a few months from 55 percent to 30 percent,” he said.
“In that context, we would welcome LNG supplies from Canada as well.”
The chancellor is leading a trade delegation to Canada in August to explore the possibility of German investment and technology assistance for the construction of two LNG facilities on the East Coast.
He said Germany is interested in Canadian hydrogen energy and Canada’s abundant deposits of critical and rare earth minerals. Western countries are trying to reduce their dependence on China for important minerals.
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