Merkel Greenlit Gas Deal with Gazprom: A Look Behind the Scenes
Gazprom Agreement Nod by Merkel Revealed
Angela Merkel's Germany-Russia relations, particularly during her tenure as Chancellor, have been under scrutiny following the crisis in Ukraine. Newly released Chancellery documents reveal the backstory of the controversial gas storage sale to Gazprom, demonstrating that Merkel was cognizant of the associated risks but chose to proceed nonetheless.
The center-right CDU politician's inaction concerning the sale of German gas storage facilities to the Russian state-controlled corporation Gazprom became apparent despite internal warnings and geopolitical risks such as Russia's annexation of Crimea. These revelations come from internal Chancellery documents, which the "Süddeutsche Zeitung" obtained via legal means after initially being refused.
In autumn and winter 2021/2022, the gas reserves in Germany's storage facilities were significantly depleted before the onset of the Russian conflict in Ukraine, resulting in a severe energy crisis for the country. Germany struggled due to reduced gas supplies from Russia.
The hidden axe behind Merkel's hand
The documents disclose that Merkel was informed about the asset swap involving BASF/Wintershall's involvement in the planned gas pipeline Nord Stream 2 in writing on September 2, 2015. Gazprom would receive a stake in the gas trade in Germany, and the subsidiary of BASF would receive a stake in gas fields in West Siberia. The documents show that SPD Economics Minister Sigmar Gabriel assured BASF that there were "no energy policy concerns" against the swap. The Chancellery asserted that it saw no legal grounds to prevent the transaction, although they were aware of the potential risks. With Gazprom's ownership, the corporation would become the direct gas supplier for city utilities, regional gas suppliers, companies, and power plants in Germany.
An internal note from the Chancellery suggests possible protests from Poland, Ukraine, and the Baltic states and that the gas storage transaction would not violate the Russia sanctions or breach the Foreign Trade and Payments Act as long as it was facilitated through the German Gazprom subsidiary.
Support for Nord Stream 2 under the wraps
The Chancellery has provided the SZ with a total of 63 documents. The application for the release of these documents was made by the SZ in 2024, relying on the Freedom of Information Act. The Chancellery initially refused to provide the documents but changed its stance after the SZ appealed.
A report submitted by Angela Merkel on July 16, 2015, clarifies the extent of the German government's covert support for the Nord Stream 2 pipeline project. Merkel and her government presented the project as a private economic initiative while publicly maintaining a neutral stance. According to the document, officials expressed sympathy for Gazprom's struggling gas business, and the solution proposed was the development of Nord Stream 2 along with pipelines 3 and 4.
Despite the risks to Ukraine's economic interests, the reduced gas transit, and a potential decrease in gas supplies, the document downplayed these concerns by suggesting how additional quantities could reach Germany and subsequently Ukraine via "reverse flow."
Sources
- ntv.de
- mau
Keywords:
- Angela Merkel
- Gazprom
- Crimea
- Attack on Ukraine
- Nord Stream 2
- Chancellery
- The employment policy and community policy of Angela Merkel's government seemed to favour the gazprom-BASF gas trade agreement, as evidenced by internal documents, despite geopolitical risks associated with Russia's actions in Crimea and Ukraine.
- The energy sector and finance industry were significant aspects of Angela Merkel's dealings with Gazprom, as indicated by the discussions surrounding the gas storage sale and the Nord Stream 2 pipeline project.
- The politics of the situation, particularly in Europe, were impacted by Angela Merkel's decision to proceed with the Gazprom gas storage sale and the support for the Nord Stream 2 pipeline project, which was initially presented as a private economic initiative.
