Germany halts Nord Stream 2 approval

Germany has taken steps to halt the process of certifying the Nord Stream 2 gas pipeline from Russia, Chancellor Olaf Scholz announced today, after the Kremlin formally recognized two breakaway regions in eastern Ukraine. Scholz said Germany would not accept the recognition of the separatist regions in the Donbas region and that German politicians need to reassess the situation “in particular regarding Nord Stream 2,” Reuters reported. Speaking to reporters in Berlin on Tuesday, Scholz said he had asked the economy ministry “to withdraw the report on security of supply with our federal networks agency”, calling this “the first step to make sure the pipeline cannot be certified at this point”.

Other key remarks:

• According to Scholz, Germany is considering diversifying its gas imports.
• German Economy Minister Habeck believes that even without  Nord Stream 2 Germany gas supplies are secure, however the price is another question.
• European Commission said Germany's decision on Nord Stream 2 will not affect the EU's energy supply.
• According to an EU commission source, EU ambassadors considered a four-part sanctions package against Russia.

NATGAS did not react to the news regarding Nord Stream 2. Price is currently trading around local support at 4.40 which coincides with the upward trendline and 61.8% Fibonacci retracement of the last upward wave. Source: xStation5