Direction: Read the following passage and answer the following questions.
The Nord Stream 2 (NS2) running from Russia to Germany across the Baltic Sea is now complete despite controversy. NS2’s manufacture began in 2016 and construction began in 2018. The 1,224 km, $11-billion underwater link is the shortest, most economical and environment friendly route to double Russia’s gas export to Germany. The pipeline offers stability to the strategically important energy trade because Russia’s dependence on the European Union and vice-versa are increased and this should promote realism.
Energy is never removed from politics. Russian authorities say NS2 can transport $5 billion cubic meters of gas each year, cover the needs of about 26 million households, and restock storage inventories, but both Germany and Russia are subject to conditions arising from a compromise between the U.S. and Germany, and EU regulations. European gas prices have broken records this year, edging close to an unprecedented
$1,000 per thousand cubic meters which places many industries and food supply chains under stress. This is due to lack of viable alternatives to gas, low storage levels because of a severe winter and the post-COVID- 9 economic surge.
Ukraine offered extra transit capacity for Russian gas to Europe at 15 million cubic meters per day for October but Russia booked only 4.3% of this, citing domestic demand. Some European politicians accuse Russia of pressure to expedite the start of NS2, but the project needs European certification, which could take up to four more months, Germany has yet to issue an operating license, blandly stating that it would rule on this next January. German Chancellor Angela Merkel is accused, mainly by Poland and Ukraine, of weakening the
EU’s political unity and strategic coherence by giving Russia greater leverage through NS2. Ukraine’s leadership is unhappy as it believes the pipeline is a Russian geopolitical weapon aimed at depriving Ukraine of political traction and crucial revenue. These concerns have been largely disregarded by the EU, which has refused to yield to the demands of a third party. What Ukraine’s President VolodymyrZelensky has secured are assurances from the U.S. that it will impose more sanctions if Russia abuses the advantages of its new pipeline and Germany’s undertakings to help Ukraine develop its energy sector and exert pressure on Moscow to keep its gas transiting through Ukraine even after the current contract ends in 2024. Russian President Vladimir Putin has made it clear that this is acceptable but would depend on purchase contracts from European customers. Behind the argument of protecting Western interests against Russia, the Ukraine case is that, if Russia cuts its transportation of gas through Ukraine, Kiev would lose billions of dollars in transit fees, and fears that Russia could reduce energy supplies by cutting those needed for Ukraine’s own consumption. Ukraine has not diversified its economic fundamentals, whose viability is dependent on Russia moving fossil fuels through its territory. But the loss of cheap money gained through transit fees could in the long run benefit its economy
The completion of NS2 suggests that no third party can affect the project’s outcome. Any flagrant violation of the commercial rationale of NS2 by Russia would enable Ukraine to invoke the assurances it has been given; it is accordingly in Moscow’s interest to proceed in a manner that avoids friction.
To enable a consensus on NS2, Germany has promised assistance to Ukraine for development of hydrogen energy, but such commitments are less robust in their detail; Berlin seems to offer a modest $206 million as seed money to attract a potential corporate in- vestment envisaged to be $1 billion. President Zelensky considers this proposal inadequate, and his Foreign Minister DmytroKuleba has been forthright saying,
“This country has learnt a number of bitter lessons that Western promises are possibly unfulfilled. We do not believe in promises.” Despite the lack of certitudes in Germany’s financial promise, there is a reason to take it seriously. The German elections could result in a coalition including the Greens, in which case the Greens might drop their op- position to NS2 in return for more substantial compensation for Ukraine. Since the hydrogen option is environmentally friendly, this presents scope for accommodating the requirements of German coalition politics and support for the Ukrainian budget and turning NS2 into a win-win proposition. It is an ill wind that blows nobody any good.
1. According to the passage, what are the reasons behind the criticism of Germany by Poland and Ukraine?
A. The US waived sanctions on the Russian companies ever seeing NS2, but the Biden administration still opposes the pipeline in principle. The deal has already attracted condemnation from Ukraine and Poland
B. Some of the European nations are blaming Germany for weakening the EU’s political unity and strategic positioning by giving Russia greater leverage in European geopolitics through this project.
C. Germany and the United States have announced a deal to allow the completion of a controversial Russian gas pipeline to Europe with the imposition of further US sanctions
D. In a nod to Poland, Germany has also agreed to sign the “Three seas Initiative “, an EU and US promoted scheme that aims to boost energy security among countries bordering the Baltic, Black and Adriatic seas
E. None of these
2. Why is the NS2 Project important for Russia?
A. The pipeline provides stability to strategically important energy trade to Russia’s and its dependence on Ukraine and vice-versa are increased and this should promote realism
B. It will fulfill the energy demand of the Russian government. Quilt the wishes of about 26 million families and restock garage inventories
C. Nord stream2 is a very ambitious energy project in Europe. This Project is approximately 1200 km pipeline project connecting Russia to Germany via Baltic Sea
D. Pipelines are meant to be safe and reliable. The $11 billion Nord Stream 2 pipeline will double the natural gas carrying capacity from Russia to Germany
E. None of these
3. What is/are the Ukraine’s concern (s) with the NS2 pipeline?
a) Ukraine offered more transit capacity for Russian gas to Europe at 15 million cubic meters per day but Russia allowed only 4.3 percent of this, citing domestic demand as a reason
b) Ukraine is not happy as it believes the pipeline is a Russian geopolitical weapon aimed at depriving Ukraine of political traction and crucial revenue
c) Ukraine faces an energy crisis on multiple fronts which could lead to political instability and deepen the country’s dependence on Russia
A. Both (a) and (b)
B. Both (b) and (c)
C. Only (b)
D. Only (c)
E. All of the above
4. According to the passage, what is the US stand on NS2 pipeline project?
A. The US administration officials said there is no chance of stopping the pipeline project and also said that,president Joe Biden wants to avoid the confrontation with Germany and other European Union allies
B. US take a tougher stand against the Project that will undermine the European security by giving Russia more leverage over the Continent and put lots of sanctions against the Russian government and European Unions
C. US commit to countering any future Russian attempt to use the pipeline as a political tool, by imposing more sanctions
D. US determination to hold Germany to account for aggression and malign activities by imposing costs via sanctions and other tools
E. None of these
5. Which of the following options is true in context to the NS2 pipeline project?
A. Sore reactions between Russia and Ukraine are very well known. Ukraine has time and again blamed Russia for adopting expansionary policy in Ukraine. Due to that Ukraine is not happy with the project
B. Energy needs havealways been prevalent in European politics. According to Russian officials it will cover the needs of about 26 million household and restock storage inventories
C. Some of the European nations are blaming
Germany for weakening the EU’s political unity and strategic positioningby giving Russia greater leverage in European geopolitics through this project
D. The pipeline project is a Russian geopolitical weapon aimed at depriving Ukraine of political traction and crucial revenue.
E. All of the above
