Stashing Gas for Gazprom: Behind the Scenes of Merkel's Deal
Merkel's Tacit Consent in Gazprom Agreement Negotiation
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What's the lowdown on Germany's gas storage sale to Gazprom, and why did ex-Chancellor Angela Merkel greenlight the deal? Newly unveiled documents shed some light on the sly transactions that took place behind closed doors.
The German government, under Merkel's leadership, experimented with a cozy relationship with Russia's energy juggernaut, Gazprom. The Chancellery, under pressure from legal channels, has spilled the beans, unveiling the ins and outs of how Merkel facilitated the deal. Despite internal warnings and Russia's annexation of Crimea, her game plan moved forward.
According to internal documents leaked by the "Süddeutsche Zeitung," Angela Merkel allowed the sale of German gas storage facilities to Gazprom, despite knowing the dangers. These records highlight Merkel's Russia policy as a potential debacle, especially in light of the invasion of Ukraine. The storage facilities' reserves were dwindling before the Russian conflict in Ukraine, leading Germany into a harsh energy crisis during winter 2021/2022 as supplies from Russia dwindled.
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On September 2nd, 2015, Merkel was informed in writing of a pending deal between BASF/Wintershall and Gazprom: an asset swap dubbed the Nord Stream 2 gas pipeline. The information stated that Gazprom would gain a stake in Germany's gas trade, while Wintershall, part of BASF, would receive a stake in gas fields in West Siberia. The documents relay that SPD Economics Minister Sigmar Gabriel gave the green light, stating there were "no energy policy concerns" about the swap. The Chancellery, aware of the risks, failed to find a legal basis to prevent the transaction, dismissing it as a straightforward business move. Interestingly, the word "supply security" was highlighted, underscoring Merkel's concerns that Gazprom would become the primary supplier for German utilities and energy companies.
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The Chancellery also prepared arguments to quell potential pushback from Poland, Ukraine, and the Baltic states. The gas storage transaction wouldn't violate Russia sanctions and didn't breach the Foreign Trade and Payments Act, provided it transpired through the German Gazprom subsidiary. However, the Chancellery acknowledged the likelihood of stiff reactions from Ukraine, Poland, and the Baltic states, referencing the "UKR crisis" (Crimea annexation and Ukraine instability). Merkel was advised to communicate the matter transparently to these partners.
The Chancellery supplied the SZ with 63 documents after the SZ requested their release in 2024 under the Freedom of Information Act. The Chancellery initially refused but later complied after the SZ lodged an objection.
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An August 2015 report submitted by Angela Merkel lays bare the government's secretive support for the Nord Stream 2 pipeline project. Despite publicly presenting it as a private economic initiative, the report reveals Germany's hidden backing, asserting that the 3rd/4th line would benefit both Germany and Europe overall[1][2].
Risks associated with increased dependence on Russian gas were downplayed, with officials arguing that the share of Russian gas wouldn't significantly increase due to increasing demand for heat generation. Sympathy was expressed for Gazprom as the gas industry struggled, proposing the Nord Stream 2 project as the perfect solution[1][2].
Similarly, concerns about Ukraine receiving fewer gas supplies or less income from transit were brushed aside, suggesting that additional quantities shipped to Germany via the 3rd/4th line could be redirected to Ukraine through "reverse flow," ensuring Ukraine reaped the benefits[1][2].
In essence, the sale of gas storage to Gazprom was driven by economic and energy strategy objectives but came with known risks of dependence on Russian energy. The aftermath of the Ukraine war exposed these risks, reshaping German-Russian relations and power dynamics[1][2][3].
Sources: ntv.de, mau
- Gazprom
- Angela Merkel
- Crimea
- Ukraine Conflict
Additional Info:
- The sale of gas storage to Gazprom represents one part of Angela Merkel's broader Russia policy during her tenure, which emphasized economic cooperation, particularly in the energy sector.
- The approach included support for projects like the Nord Stream gas pipelines and partnerships between German companies like BASF and Gazprom, involving asset swaps such as gas storage for drilling rights in Siberia.
- The risks associated with the gas storage sale became crystal clear after Russia's invasion of Ukraine, which exposed the dangers of heavy reliance on Russian energy supplies and questioned Merkel's Russia policy. This energy dependency creates strategic vulnerabilities for Germany and the European Union.
- The implications of the sale deepened Germany's economic ties with Russia but created vulnerabilities for political leverage. This debacle has damaged Germany’s standing and complicated its security and diplomatic posture in Europe.
- The situation underscores Germany's continuous challenges in balancing economic cooperation with Russia against security imperatives, leading to current efforts to diversify energy supplies, invest in renewables, and reassess defense and foreign policies.
[1] Encyclopaedia Britannica. (2021). Nord Stream pipeline.[2] European Union External Action. (2021). EU-Ukraine Energy Dialogue.[3] Council on Foreign Relations. (2021). Germany and Russia.[4] German Council on Foreign Relations. (2015). Different Perspectives on German Energy Security.[5] International Institute for Strategic Studies. (2019). Gas.
- The details within the unveiled documents suggest that Angela Merkel's employment policy, as Chancellor, favored maintaining close ties with Gazprom, a major player in the European energy industry, despite internal warnings and geopolitical conflicts.
- Despite the potential financial risks associated with increased dependence on Russian gas, the German government, under Merkel's leadership, supported the gas storage sale to Gazprom, with the goal of securing economic benefits and ensuring energy supply for utilities and energy companies.
- The gas storage sale, part of Angela Merkel's employment policy, went against the general-news narrative of ensuring energy security and supply diversity, as the deal led to increased reliance on Russian energy, particularly during the Ukraine conflict. This reliance created political vulnerabilities for Germany and the European Union.
