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US President Trump recently signed the fiscal 2020 defense authorization bill, which includes sanctions on companies involved in the construction of the Russian-German gas pipeline project "Beijing-2". The move was condemned by Germany.

Analysts believe that behind the "Beijing-2" project is the game of energy security, economic interests and geopolitics of the United States, Russia and the European Union represented by Germany. The project may be postponed after being sanctioned, but will not be abandoned halfway. Russia will tighten the energy lifeline of Europe more tightly, and the geopolitical conflict between the United States and Russia in Europe will intensify.

Germany reacts strongly

The Beixi-2 pipeline connects Russia and Germany via the Baltic Sea floor, and then transports natural gas to other parts of Europe through the German trunk pipeline. The total investment of this project is about 9.5 billion Euros. Gazprom accounts for half, and the rest is invested by companies from the Netherlands, France and Austria. The project is scheduled for completion in 2019. On October 30 this year, the Danish government approved the "Beixi-2" project, which means that this natural gas transmission pipeline project removes the final obstacle and is expected to be completed within a few months.

The "North Stream-2" project has been criticized by the United States. Trump claims to worry about Europe becoming a "captive of Russia" and threatens to sanction companies involved in the project. All circles in Germany have been doing the work of the United States, but the sanctions bill has finally come into effect.

The German government issued a statement on the 21st expressing regret over the US decision. German Deputy Chancellor and Minister of Finance Olaf. Schultz said that sanctions are serious interventions in German and European internal affairs and sovereignty, and US sanctions are puzzling, unlike decisions that a NATO ally can make.

German Chancellor Angela Merkel said in a Bundestag on the 18th that Germany opposed U.S. extraterritorial sanctions.

US intentions exposed

Analysts point out that the disputes encountered in the "Beijing-2" project have both economic reasons and geo-strategic factors.

The United States has always wanted to find a market for its shale gas. However, due to the long transportation distance and the need for liquefaction and gasification, the price of US LNG on the European market is much higher than that of Russia.

Siegfried, senior researcher at the German Institute for World Trends International Politics. Fischer told reporters that the two US senators who initiated the sanctions have deep backgrounds in oil and gas interests, and they hope to crowd out competitors in this unfair way.

US geopolitical considerations are even more pronounced. US Ambassador to Germany Grenell sent a letter to the German companies involved in the project in January this year, saying that with the two natural gas pipelines "North Stream-2" and "Turkey Creek" put into operation, the transit of Ukrainian imports of Russian natural gas into Europe will gradually become In addition, Ukraine's political and security status will decline, and the EU's dependence on Russian energy will increase.

Fischer believes that the United States does not want to see Russia and the European Union go too close, and Russia-Europe cooperation will exert tremendous competitive pressure on the United States. Excluding Russia's influence from Europe has been an important strategic goal of the United States after the Cold War.

Around the "North Stream-2" project, old European countries such as Germany and France and new European countries such as Poland disagree. The intention of the United States is to "divide and conquer" Europe.

Increased geo-competition

After Trump signed the bill, Swiss All Oceans, which laid the pipeline for "North Stream-2", announced on the 21st that it would suspend related activities.

A spokesman for the "Beixi-2" project told the media that even if the sanctions take effect, the project will continue to progress steadily and be completed as soon as possible. He also said that completing the project is critical to the security of gas supplies in Europe. Some in the energy industry believe that U.S. sanctions will delay project completion, but cannot stop project completion.

German analysts believe that as the European Union and Germany pay more attention to climate change and promote energy transition, Europe ’s demand for clean energy such as natural gas will continue to expand, so Germany will not easily abandon this project.

Fischer believes that Germany will step up negotiations with the United States within a 60-day window, and may introduce a new interpretation to allow relevant companies to circumvent sanctions. However, as Russia strengthens its influence in Europe through energy supply, geopolitical competition between the United States, Russia, and Europe will intensify, which will be a new reality. This situation will cause "Beixi-2" and Russia's natural gas supply to Europe in the future to face an unexpected situation.

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