Nord Stream 1: Canada to return repaired Russian pipeline part to Germany

Canada will return to Germany the repaired turbine of the Russian Nord Stream 1 pipeline, vital for sustaining German gas supply. Ukraine has condemned the move, saying it undermines the sanctions against Russia.

Canada will return to Germany the repaired turbine of the vital Nord Stream gas pipeline

Canada has announced it will return to Germany a repaired turbine of the Russian Nord Stream 1 pipeline, which is a core source of the gas supply to Germany.

It comes as the pipeline prepares to undergo maintenance from July 11 to 21. Although the maintenance is nominally routine, the tension with Russia and the sanctions status in allied countries like Canada had prompted German leaders to consider the possibility of a longer shutdown. 

The repairs come amid Canadian sanctions against Russia extending "to land and pipeline transport and the manufacturing of metals and of transport, computer, electronic and electrical equipment, as well as of machinery."

Ukraine had urged Canada not to return the repaired part, saying it would undermine sanctions against Russia.

Russia said it decreased gas flow through the Nord Stream because of the absence of the repaired turbine

The parts were being repaired at the Canadian site of German industrial giant Siemens. Russia's Gazprom had cited the equipment's absence last month as the reason for cutting capacity along the Nord Stream 1 pipeline to 40 %.

But when announcing its decision on Saturday, Canada's Natural Resources Minister Jonathan Wilkinson said it was taken to "support Europe's ability to access reliable and affordable energy as they continue to transition away from Russian oil and gas."

The minister particularly cited concern for the German economy as well as German citizens, saying they could be left unable to heat their homes during winter.

Ukraine says returning part 'bowing to Russian blackmail'

Ukraine had been urging Canada not to return the repaired turbine. Alexandra Chyczij, the national president of the Ukrainian Canadian Congress said it would be "setting a dangerous precedent that will lead to the weakening of the sanctions regime imposed on Russia."

Sergiy Makogon, the chief executive officer of Ukraine's gas transmission system OGTSU stressed the turbine must be returned to Ukraine rather than Germany.

The country argued that Germany could rely instead on Ukrainian pipelines to transport a sufficient amount of gas.

Makogan described in a Facebook post the situation as "Kremlin blackmail." Russia's parliament had said the turbine's return would lead to lifting up gas supplies to Europe.

Siemens had proposed the shipping of the turbine back to Germany first, rather than to Russia, as a solution to Canada's legal dilemma. Berlin will then deliver it to Russia's state-controlled Gazprom, Reuters reported, citing a government source.

The Nord Stream 2 pipeline project was famously halted, despite it being completed, soon after Russia's invasion of Ukraine in February. But the original sister pipeline, inaugurated in 2011 and with a similar transport capacity, has remained in operation so far with its deliveries as yet unaffected by European sanctions.

Electricity security called into question

Fears are growing in Germany regarding a difficult winter, should Russia maintain its reduced gas supply.

Peter Adrian, the president of the Association of German Chambers of Commerce and Industry (DIHK), warned that the crisis could take its toll not only on citizens in need of heating their homes, but also on companies and Germany's economy at large.

Adrian told the dpa news agency that this could trigger a serious recession, predicting a decline in economic output of up to 10%.

"The clock is ticking and, as businesses, we have to think about the worst case scenario," Adrian said, warning of "disaster" should Russia fail to turn the gas supply back on after the conclusion of the pipeline's maintenance on July 21.

The German government is working hard to establish alternative floating terminals to receive liquefied natural gas. However, such plans are unlikely to materialize by winter.

rmt/msh (AFP, dpa, Reuters) 

Canada to release equipment for Russia-Germany gas pipeline

FILE - A view of pipe systems and shut-off devices at the gas receiving station of the Nord Stream 1 Baltic Sea pipeline and the transfer station of the OPAL (Ostsee-Pipeline-Anbindungsleitung - Baltic Sea Pipeline Link) long-distance gas pipeline in Lubmin, Germany, June 21, 2022. The Canadian government said late Saturday, July 9, 2022 it will allow the delivery to Germany of equipment from a key Russia-Europe gas pipeline that has undergone maintenance — equipment whose absence Russia's Gazprom cited last month as a reason for more than halving the flow of gas. (Stefan Sauer/dpa via AP, File)

BERLIN (AP) — The Canadian government says it will allow the delivery to Germany of equipment from a key Russia-Europe natural gas pipeline that has undergone maintenance — equipment the absence of which Russia’s Gazprom cited last month as a reason for more than halving the flow of gas.

The return of turbines from the Nord Stream 1 pipeline sent to Montreal for a scheduled overhaul has been complicated by sanctions imposed on Russia over the war in Ukraine. Canada’s minister of natural resources, Jonathan Wilkinson, said in a statement late Saturday that “Canada will grant a time-limited and revocable permit for Siemens Canada to allow the return of repaired Nord Stream 1 turbines to Germany.”

That, Wilkinson said in the statement posted on Twitter, will support “Europe’s ability to access reliable and affordable energy as they continue to transition away from Russian oil and gas.” He said that “absent a necessary supply of natural gas, the German economy will suffer very significant hardship.”

Siemens Energy said after Gazprom started reducing gas flows in mid-June that it had been unable to return a gas turbine that powers a compressor station on the pipeline, which had been overhauled after more than 10 years in service, to the customer, Gazprom.

German politicians have dismissed the Russian explanation for the 60% reduction in gas flows through Nord Stream 1, saying that equipment shouldn’t have been a significant issue until the fall and the Russian decision was a political gambit to sow uncertainty and push up prices.

The Canadian move comes before Nord Stream 1 is due to shut down for annual maintenance on Monday. In previous summers, the work led to a roughly 10-day shutdown, but German Vice Chancellor Robert Habeck has said he suspects that Russia may cite “some little technical detail” as a reason not to resume gas deliveries.

The reduction in gas flows comes as Germany and the rest of Europe try to reduce their dependence on Russian energy imports. Germany, which has Europe’s biggest economy, gets about 35% of its gas to power industry and generate electricity from Russia.

Last month, Habeck activated the second phase of Germany’s three-stage emergency plan for natural gas supplies, warning that Europe’s biggest economy faced a “crisis” and storage targets for the winter were at risk.

On Friday, energy company Uniper — Germany’s biggest importer of Russian gas — asked the government for a bailout to cope with surging gas prices.