The Kremlin’s New Strategy: Gazprom versus NATO?

Quote: Russian politicians are forgetting to look ahead and instead, they completely ignore economic consequences as they focus on their political motivations. Russian merger Gazprom is a state-owned enterprise; all decisions made by the Parliament and government are to be fulfilled even if they contradict the economic profitability policy of the merger. However, imposing actual economic sanctions on politically unstable consumers is not only due to the merger, and more due to the boosting of production efficiency at local facilities and envisaging further business promotion and profitable projects for the international markets. Nevertheles, it should take into account that the Kremlin power has been targeted by Gazprom’s political lobby led by Dmytry Medvedev and the merger is to be become a very decisive instrument for pursuing foreign policy strategic goals. At a time being, GAZPROM is performing gas delivery on the following acceptable routes:
 Russia-Ukraine-Slovakia-Czech Republic-Germany-France
 Russia-Ukraine-Hungary-Austria  Russia-Turkey-Serbia-Hungary-Austria (“Blue Stream-1” and “Blue Stream-2”)
 Russia-Georgia-Turkey
 Russia-China
 Russia-Germany (“Nord Stream”)
The merger has to follow-up the Kremlin’s vision on global political engagement. It was reflected with regard to the NATO Bucharest Summit when some Allies declined MAP granting to Georgia and Ukraine. As it was said many times, dependence of some Western European nations on Russia energy supplies has become the decisive factor for why MAP was denied to these two countries. But, what is the concrete energy dependency factor for Euro-Atlantic cohesion? .
In May 2005, Germany and Russia signed a special agreement to build and launch a new more massive gas pipeline project from St. Petersburg to near the German Hamburg port. The project aims at widening Russia’s economic as well as political presence in the European continent and increasing its leverage in the EU. Germany, under leadership of Shredder and now under leadership of Merkel has been seeking to become a key provider of such interests of its “new ally” as ex-State Chancellor once claimed. The gas pipeline via the Baltic seabed will become the fourth energy corridor supplying Russian energy resources to Western Europe. It could be seen as the last political gift from Gerhard Shredder to his close friend Vladimir Putin, before he lost the battle to Christian Democrat Union’s leader Mrs. Merkel. Despite harsh pessimistic predictions, she gained full support for the project, although it changed national foreign political attitudes toward incumbent Russia's regime. Even though being a new project, it will face being ruined during the political stage of implementation. Russia perceived this change and is forcing moving ahead and pushing for the European context. Namely, President Putin’s visit to Finland in August of 2005 was determined by the willingness of Russia to pursue two main purposes:
 persuading the Finish government, as a transit nation in aegis of the project, to pipe out the gas and take an active role in fostering the project towards Germany new government;
 As a forthcoming chairman in the EU, Russia aimed to boost the project’s capability and improve the political grounds at the entire European level.
Actually, Putin’s lobbying effort has not been concluded and is still underway. It seems that cautious Finns partially agreed to this undertaking, hoping to gain great profits. However, Russia’s increasing political influence seems less attractive for Finland as well as for the other EU nations, including Germany. The project is estimated to cost at least US$4 billion and Russia will utilize those technological achievements and investment planning mechanisms used for a similar project in the Black Sea, the Turkish Blue Stream gas pipeline. That project has reaped many positives for Russia and the Kremlin expects the same for the Northern gas project. If successful, it will reinforce by and large Russia’s energy monopoly in the European market. Russia earns more than $10 billion annually by transporting gas to Europe, almost 30% of the state budget, therefore, increasing the supply will increase those benefits and the Gazprom merger could become the most powerful corporation not only in Europe, but also in the whole world.
Initially, the pipeline will have one strand, capable of pumping 27.5 billion cubic meters of gas, to be joined in time by a second strand, which will double that capacity. Even more, Gazprom launched a website, http://www.negp.ru, which will update users about the pipeline project. In this regard, many European nations express concern about this international deal and are dissatisfied with the decision of the German government.
The 1.089 km pipeline is set to run from Wyborg near St. Petersburg to Greifswald in Germany. The four billion dollar European pipeline is to be built by Gazprom, which holds a 51 percent stake and German companies "BASF" and "E.ON". Gas is due to begin flowing through the pipeline in 2010. A special operator company "North European Gas Pipeline Company" (NEGPC) was set up to run the project with chairmanship of Gerhard Shredder. Russia already supplies 47% of Germany's natural gas and the pipeline, with an annual capacity of 55 bcm., will be capable of meeting the other half of German needs. The pipeline, more than 1.200 kilometers long, upon its birth, has been hailed by the EU. Willingness to take part in further development of the project has been expressed by Belgium, UK and Holland. Moreover, the Dutch company "Gasuine" proposed utilizing the gas pipeline’s net "Bangzand Baction Line", operative since 1997, to supply further Russian gas via the NEGP to Netherlands, Belgium - where a massive gas depot is to be built (with Gazprom's involvement) equal to that of the Ukrainian one, with an average 7 trillion cubic meter storage capacity- and the UK as well as provide further delivery to Sweden and Finland. Furthermore, it is expected to deliver Russian gas to the USA and Canada via liquefied natural gas (LNG). Although, some concrete suspicions have spurred regarding two key factors:

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