Last week, the Italian stance against the automatic renewal of EU’s sanctions against Russia made headlines. Then the 28 unanimously agreed to a six-month extension. Now, the Italian PM Matteo Renzi points his finger on the Nord Stream 2 submarine pipeline linking Russia to Germany. What is happening?
Let’s start from the end. The 28 EU countries unanimously decided to extend economic sanctions against Russia for six more months. Sanctions, that were issued for a period of one year and due to expire at the end of January, now will remain in force until July. Unless further renewals. Restrictions involve the supply of weapons, military equipment and high technology in general, as well as technologies related to the oil industry.
This is not a minor detail. We’ll see.
Russia, for its part, has responded with counter-sanctions that affect the sectors of trade with European countries. Ban on imports of fruit, agricultural products and foodstuffs in general. The pingo-pong game of sanctions and counter-sanctions, therefore, continues.
Pressures
Italy is one of the most exposed European countries to the effect both of EU’s sanctions and Russian retaliation. From this point of view, the commercial exchange between Rome and Moscow has suffered huge losses last year. Some 3 billion euro less for Italian trade. It is clear how Mr.Renzi is experiencing pressure from industrial and financial lobbies.
But Italy has also lost something on the other front. The restriction on the sale of technologies related to the oil industry has in fact caused the cancelling of the South Stream pipeline that was supposed to bring the blue gold from Russian coast on the Black Sea to Italy through Bulgaria and Greece. The mega-project carried by the Italian oil company Eni went to hell and was first replaced by the Turkish stream, now stopped due to Russia-Turkey tensions after the downing of the SU-27 in Syria, and then by the Nord Stream 2.
And this is where the chickens are coming home to roost.
Marriage
Germany is a key partner in the North Stream 2. BASF has signed an agreement with Gazprom last September amidst sanctions. The existing pipeline already lets pass directly from Russia to Germany 55 billion cubic meters of gas per year, 10% of all European requirements. Its doubling will dramatically increase European dependence on Russian gas for decades to come. Someone said that a pipeline is like a marriage, it binds you forever.
In addition, the Nord Stream 2 – like its existing twin – will bypass Ukraine, leaving it increasingly alone in managing the supply of gas from Russia. This seemed to many a contradiction, when the EU says it wants to help Ukraine on its way to Europe.
And we’re back to sanctions.
If more than half a year after the outbreak of war in Ukraine and the annexation of Crimea, we are still discussing about sanctions, the reason is simply that the situation has not changed. Russia continues unconcerned the integration of Crimea, an annexation recognized as illegitimate by the international community, while the implementation of the agreements of the Minsk-2 doesn’t make any progress.
The Italian request to set a debate on sanctions renewal rather than let them automatically get extended brought with it two positive effects, from the point of view of those who support the sanctions. While giving them new vigor, exactly because renewed after a review of the Russian position, it turned the spotlight on the contradictory position of some European countries, like in the case of the Nord Stream 2. Probably, both unwanted effects.
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Last week, the Italian stance against the automatic renewal of EU’s sanctions against Russia made headlines. Then the 28 unanimously agreed to a six-month extension. Now, the Italian PM Matteo Renzi points his finger on the Nord Stream 2 submarine pipeline linking Russia to Germany. What is happening?
Let’s start from the end. The 28 EU countries unanimously decided to extend economic sanctions against Russia for six more months. Sanctions, that were issued for a period of one year and due to expire at the end of January, now will remain in force until July. Unless further renewals. Restrictions involve the supply of weapons, military equipment and high technology in general, as well as technologies related to the oil industry.
