Energy Policy 148 (2021) 111991 Contents lists available at ScienceDirect Energy Policy journal homepage: http://www.elsevier.com/locate/enpol Denmark and Nord Stream 2: A small state’s role in global energy politics Steve Wood a, *, Otto Henke b a b Department of Politics and International Relations, Macquarie University, Sydney, 2109, NSW, Australia Hamburg, Germany A R T I C L E I N F O A B S T R A C T Keywords: Denmark Nord stream 2 Energy politics Russia Germany European Union United States Legal aspects This article analyses Denmark’s involvement with the Nord Stream 2 gas pipeline project. Impressing the Baltic as a sea of strategic significance and a potential international flashpoint, the controversial project thrust Denmark into a position of decision-making importance beyond its size and material power. Geopolitical and environmental considerations, and normative impetus derived from a liberal democratic political culture, influenced Danish attitudes towards the project. The impact of these concerns substantially delayed the granting of a permit for pipeline construction in the Danish marine space, frustrating governments and business in Russia and Germany. Ultimately, approval was granted because Denmark is a rule of law state. Yet the delay is crucial. More broadly, the article illustrates how, in the energy policy domain, illiberal regimes attempt to exploit liberaldemocratic legal systems through nominally commercial entities, and considers the responses by other actors in this case. 1. Introduction Nord Stream 2 is an energy project enmeshed with international and domestic politics, security and strategic factors, environmental con­ cerns, complex legalities, and the prospect of huge financial rewards or losses. The dual natural gas pipeline must pass through the territorial waters or Exclusive Economic Zones (EEZ) of at least five states. Russia, Germany, Finland and Sweden approved the first and subsequent pro­ posed routes. Why was Denmark reluctant to approve Nord Stream 2 after accepting Nord Stream 1 a few years earlier? The article aims: i) to explain the involvement of Denmark with Nord Stream 2; ii) to illumi­ nate a case of multidimensional politics pervading the energy policy field. We argue that the behaviour of President Vladimir Putin’s regime in Russia prompted a reappraisal among Denmark’s political class, especially its foreign and security policy sector, and the public, of the country’s role in regional and world affairs. Russia’s annexation of Crimea in 2014 was a turning point. Support for Ukraine, Baltic states (Wrange and Bengtsson 2019) and Poland, aversion to Russian military manoeuvres and provocations, and disquiet about European dependence on Russian gas, influenced local perceptions as Denmark was thrust into a role as a decisionmaker on the future of Nord Stream 2. As politici­ zation by opponents and proponents intensified, Danish authorities wanted to appear meticulously neutral; legally and technically. The deferral resonated, ironically, of a Russian bureaucratic politics of delay and subterfuge witnessed in other energy projects, though not for the same reasons. Delaying of a construction permit for Nord Stream 2 recalled Sakhalin 2 and other hydrocarbon ventures, when Russian brinkmanship sought to extract better deals and control for state firms (Baran 2007: 142; Karm 2008). The Danish review process affirmed the implausibility of claims by Nord Stream 2 AG, and German and Russian officials, that the project was ‘not political’. The political character of its predecessor Nord Stream 1 was magnified by Nord Stream 2.1 The case is an illustration of how illiberal regimes strive to exploit liberal-democratic legal systems without adhering to similar operations of law domestically or internationally, and how some other actors have responded. After two and half years, a conditional permit for pipeline construction was granted by the Danish Energy Agency (DEA) because Denmark is a rule of law state with autonomous authorities. Although the process was prolonged well beyond what Nord Stream 2 AG, the Russian government, and other project supporters considered accept­ able, the DEA could not infinitely delay or refuse a permit based on designated environmental or safety criteria and the law of the sea (UNCLOS). In that period, and since, a multi-vector politics intensified. Nord Stream 2 was due for completion at the end of 2019. Postponement * Corresponding author. E-mail address: steve.wood@mq.edu.au (S. Wood). 1 A letter from the Polish Economics Minister to Nord Stream’s Managing Director, Matthias Warnig (Government of Poland 2007), another by eight CEE leaders (Sytas 2016), and the exclusion of Polish waters or EEZ as options, were a few of numerous indications how political both projects are. https://doi.org/10.1016/j.enpol.2020.111991 Received 9 June 2020; Received in revised form 20 September 2020; Accepted 18 October 2020 Available online 10 November 2020 0301-4215/© 2020 Elsevier Ltd. All rights reserved. S. Wood and O. Henke Energy Policy 148 (2021) 111991 compelled Gazprom to negotiate a new transit contract with Ukraine. It also extended the time for legal challenges, for the US to portend or implement sanctions against persons and companies associated with the project, for the German regulator Bundesnetzagentur (BNetzA) to consider the consortium’s application for derogation from EU rules, and progress in the construction of a gas supply alternative in the form of Baltic Pipe. alternative infrastructure that may recast European and Eurasian energy politics. We then appraise the involvements of Germany and the United States before a discussion section. A conclusion with policy implications follows. Limitations of the inquiry include that its focus on Denmark means less attention can be paid to other actors. We cannot address all aspects of a very expansive theme, for example, those enhanced by economic modelling or extensive statistical data. The uncertain out­ comes of some legal proceedings, or of other potential cases, cannot at present be fully assessed. 2. Methods and materials 3. Nord Stream 1 and Nord Stream 2 The authors apply methods of documentary analysis and process tracing to a case study of Denmark and the Nord Stream 2 project. The topic also requires attention to the positions and conduct of other actors, including in Denmark’s neighbour Germany, EU institutions, Russia, the US, Poland, and Nord Stream 2 AG. We integrate material from Danish ministries, agencies and political groups, EU sources, companies, and global media. We incorporate semi-structured interviews with the German Commissioner for Relations with Russia and Central Asia, Dirk Wiese, a German Foreign Ministry official, and a senior desk officer at the US diplomatic representation in Germany. We also draw on a range of scholarly literature. The contribution offers an alternative to analyses emphasising technical or economic dimensions of energy policy. In that regard we follow Martin Jirušek (2020), whose qualitative and content analysis compares Visegrad countries’ relations with Russia/Gazprom, conflated as effectively a single entity. We aim to illuminate the political compe­ tition, international, domestic, and ‘supranational’, that defines the theme (Cf. Wood, 2010; Maltby 2013; Schmidt-Felzmann 2020). Sup­ port for that view is imparted by Sziklai et al. (2020: 9), who, having applied a cooperative game model of bargaining to an economic cost-benefit perspective, declare that ‘the Crimean conflict provided a precedent where Russia was willing to take financial losses to achieve political gains (both domestic and international). The question is whether the geopolitical gains exceed the costs of the closure of the Ukrainian route? In any case, a credible threat will likely increase the geopolitical influence of Russia’. The passage affirms that, for Nord Stream 2, politics trumps economics. Vatansever’s (2017) study on surplus capacity and whether Russia is building too many pipelines also ranks political over economic motives. It could be plausibly argued that, for Russia’s rulers, Nord Stream 2 has become as much a status issue or ‘prestige project’ as one of economic-financial benefit, given the time and costs accrued (Wood, 2013). Looking to 2030, Eser et al. (2019) provide a very detailed and ‘highly resolved’ series of simulations, through which they seek to ‘capture the real-world behaviour of actors in the gas market’. Most of this excellent analysis prioritises presumed market choices in an implicitly liberal legal framework. The possible shift of transit fees from Poland and Ukraine to Germany is a key factor. Ultimately, the problematique is distilled as increased political risk (for Russian gas imports) versus technical and financial risks (for LNG im­ ports).2 While potential supply disruptions are addressed, the scope of political risk foreseen by the authors is restricted if one considers that two major players, Russia and Ukraine, are de facto at war, and that a high level of antagonism permeates the multi-actor context. For these reasons we do not approach the topic as a cooperative game. Parties involved are competing, for or against the project, between and within individual countries, and in some contradictory ways. The article proceeds with an outline of the two Nord Stream projects. It then considers Denmark in international affairs, Denmark and EU energy policy, Danish domestic politics, and how Russian foreign policy and the Nord Stream 2 project have impacted on these contexts. It then examines proposed routes for the pipeline and the response of Danish authorities. The next section looks at the Baltic Pipe project, an Nord Stream 1 is a Russian-German venture, promoted from 2005 by President Putin and then German Chancellor, Gerhard Schröder. Gaz­ prom, the Russian state gas company, owned 51 per cent, and German firms E. ON Ruhrgas and BASF/Wintershall each 24.5 per cent. The latter two each sold 4.5 per cent to Dutch company, Gasunie. The original Nord Stream company is incorporated in Switzerland. Having approved the project and facilitated a €1 billion loan for Gazprom while Chancellor, Schröder took up an executive position with Nord Stream AG shortly after losing the 2005 election (Whist 2008). Dual pipelines for the first Nord Stream project run from Viborg in Russia to Lubmin, near Greifswald, in Germany. Construction began in 2010 and was completed in 2012. It has capacity to deliver 55bcm of gas per year to European customers. According to Nord Stream.com (2013) the total investment in the project was €7.4 billion, much less than estimates by economists who put the total costs at between $19.9 billion and $23 billion (Chyong et al. 2010: 9). Nord Stream 2 is also intended to deliver 55bcm of gas annually through a pipeline running from Ust-Luga to Lubmin. It is owned by Gazprom and co-funded by a consortium of ‘investors’ comprising Wintershall and Uniper (previously E. ON), OMV of Austria, Royal Dutch Shell (Netherlands/UK), and French company Engie. 27 financial en­ tities provided credit. Like its forerunner, Nord Stream 2 AG has its corporate seat in Switzerland. This has the semiotic purpose of trans­ mitting the project as a ‘European’ venture. The company projected a cost of €9.5 billion. Expenditure continues to rise, for re-routing and spiralling litigation costs. Piotr Przybyło (2019), who estimated Nord Stream 1 as costing €15.7 billion, calculated the total cost of Nord Stream 2, from source to consumer markets, at €17.2 billion, far more than three alternative onshore construction routes. Transit tariffs for any of Przybyło’s suggested alternative routes would be cheaper than those for Nord Stream 2. Based on the 2009 Gazprom-Naftogaz contract, transit fees through Ukraine would be equivalent to the estimates for Nord Stream 2’s offshore route. Proposed new Ukrainian tariffs3 makes transit through that country more expensive, although compared with that option it would take twenty-two years to recoup the savings through Nord Stream 2 (Przybyło 2019).4 4. Denmark’s reassessment of its place in regional and world politics Danish perceptions of Denmark as an international entity oscillated between a ‘small state’ with a moral right to exercise influence and one with little power to do so (Thorhallssen and Wivel, 2006; Doeser 2011; Mellander and Mouritzen 2016). Few studies have specifically 3 This may cost about $2 billion in 2020 (Platts 2020a) or $7 billion over five years from 2020 (RFE/FL, 2019). 4 According to Platts (2020b), ‘Gazprom Export’s head of pricing, Sergei Komlev, told investors June 22 that the company expected its average gas export price in 2020 to be $130-$140/1000 cu m’. Applying a very rough calculation, if gas were to flow at $130 per 1000 cm x a full capacity of 55bcm p.a., it would result in revenue of $7.15 billion. If gas did not flow, it would result in foregone revenue of the same sum. 2 The unit of measurement cannot be the same for both sides (political versus technical-financial) of this equation. 2 S. Wood and O. Henke Energy Policy 148 (2021) 111991 investigated Danish involvement with the Nord Stream ventures. Got­ kowska and Szymanski’s (2016) appraisal of Nordic countries is a partial exception. Ann-Sofie Hermanson (2018) applies a multi-level gover­ nance perspective on energy security with a Baltic Sea focus. Nord Stream 2 is briefly addressed though Denmark is scarcely noted. Nina Tynkkynen (2017; 2018) examines Russian participation in or influence on environmental governance in the Baltic Sea. Denmark is an implicit party though it is not assessed. Goldthau and Sitter (2020: 122) do mention the ‘interesting case’ of Denmark, which ‘separated security from regulatory aspects’. The authors list it (2020: 117) as ‘against NS2 for geopolitical reasons’. Denmark receives more attention in Anke Schmidt-Felzmann’s (2020) instructive analysis of Nord Stream 2 and conflicts or interactions among many actors. Despite interruptions of gas supply from Russia in 2006 (Baran 2007; Chow and Elkind 2009; Richter and Holz 2015), the Russo-Georgian war in 2008, and Polish protests, the Danish government was less sceptical about the first Nord Stream than, for example, Swedes (Lidskog and Elander 2012). There was opposition, prominently from Uffe Ellemann-Jensen, a former Danish foreign minister and vigorous sup­ porter of small states in international relations (Ellemann-Jensen, 2009). Official approval coincided with an agreement of energy company DONG, whose major shareholder was the Danish Finance Ministry, and Gazprom to double gas delivery volumes (Schmidt-Felzmann 2011: 588; DONG, 2009). Procuring relatively low-cost energy resources was then prioritised. In 2006 Gazprom and DONG signed an agreement in which from 2011 ‘Denmark’ would ‘annually purchase 1 billion cubic meters of Russian gas during a period of 20 years’. In 2009, volume was doubled through another contract specifying that for 18 years from 2012 ‘Dong Energy will annually receive 1 billion cubic meters of gas more through the second line of the undersea pipeline’ (Gazprom/DONG 2006; Gaz­ prom 2011). These contracts left Denmark, by association with DONG, with a legacy.5 Nord Stream 1 proceeded in a comparatively less tense political sit­ uation and when key actors in EU institutions and member states held different preferences. Russia’s annexation of Crimea and destabilisation of Ukraine imperilled European security and principles of territorial integrity. These events irradiated Nord Stream 2 as more than an energy project and divulged change in Denmark’s self-perception and role in European politics. Denmark’s reassessment was displayed in a review on diplomacy and defence that acknowledged a changing world in which Russia, named as a challenge for Europe, and security of energy supply, are high on the agenda (Danish MFA, 2016; Youngs 2020). The review recommended a more focused foreign policy and highlighted three categories: interests, partnerships, and influence. Denmark is motivated to address marine-strategic, energy, and environmental issues and ach­ ieve EU commitments and goals. It ‘must increasingly be able to work closely with other EU member states in Brussels as well as in the main policy driving countries’ capitals’ (Danish MFA, 2016: 8). In a 2017 proposed defence agreement, Russia was identified as a threat, including on ‘hidden fronts’ (Danish Ministry of Defence 2017). A Danish Foreign and Security Policy Strategy 2019–2020 reinforced themes in the 2016 Review and gave additional guidelines for navigation in a changing world order (Danish Government 2018). The document mentions Russia twenty times, including a reference to it not having ‘changed its aggressive conduct in the Baltic Sea region’ (Danish Government 2018: 12; Mölder 2011). It emphasised a common, robust, and principled EU stance externally, and cohesion and resilience internally. Denmark views itself as a ‘responsible global actor’ that ‘contributes actively’ to solving global challenges and upholding international law and human rights (Danish MFA, 2019). As Minister of Defence and a contributor to other security reviews, Claus Hjort Frederiksen (2018; 2019) reiterated new and ‘complex threats against Denmark’, some emanating from Russia (Jakobsen and Rynning 2018: 878; Saxi 2019). Foreign Minister, Anders Samuelsen, said Russia is ‘definitely not working in the interest of Denmark in general’ (Russian Business Today, 2019). Russian leaders did little to ameliorate problems. NotPetya, a computer virus designed by hackers working for the Russian military, wrecked Ukraine’s government sys­ tems along with hospitals, power companies, airports, and banks. It also crippled Danish shipping company Maersk and other commercial en­ tities (Ashford 2019). 4.1. Denmark and EU energy policy Danes had been ambivalent about the EU but support an energy policy that reduces if not ends dependency on external states who may (or may not) reliably deliver raw materials but are objectionable for other reasons. Tension persists between EU-Russia energy relations and the EU’s attempt to mediate an end to the Russia-Ukraine conflict (Krickovic 2015; Wigell and Vihma 2016). Applying ‘Construal-Level Theory (CLT)’, Tom Casier (2016: 764) aimed to show how ‘at an ab­ stract level one tends to overlook the enormous complexity of day-to-day energy relations and to replace it by simple, in this case geopolitical, explanations’. He argued that ‘a broader political process of geopoliticisation of EU-Russia relations took place – outside the energy sector – in which both parties started to frame each other’s behaviour increasingly in terms of assumed geopolitical agendas’ (Casier 2016: 772). The geopolitical aspect cannot be dismissed (Romanova 2016). It impacts on other areas of bilateral affairs and the Danish foreign affairs sector regards it as very relevant. Energy relations with Russia also infuse EU internal dynamics, within and between member states and institutions. In the lead-up to Nord Stream 1, a constellation of Germany holding the EU Presidency, France under President Nicolas Sarkozy, and the first José Barroso Commission produced optimistic assessments of ‘strategic partnership’ with Russia (European Commission 2007a, 2007b; Bozhilova and Hashimoto 2010; Schmidt-Felzmann 2011). The Commission pursues a technocratic, economic liberalisation agenda and stresses that it, not member states, supervises energy policy and regulation (Maltby 2013). The ‘apolitical’ Commission’s orientation is susceptible to change dependent on who exercises control over certain portfolios. The Third Energy Package (gas section) emphasised unbundling of suppliers from operators, price transparency, and the right for all EU members to access networks (EU 2009). This stemmed from concerns about Gazprom’s potential dominance of the EU gas market (Goldthau and Sitter 2015). EU-Russia relations steadily deteriorated, reaching a nadir over the Ukraine crisis, from which they have not recovered. US disapproval of Russian energy deals with EU states made it and the Commission led by Jean-Claude Juncker, on that issue, allies. About 100 European Parlia­ ment politicians from Green, liberal, and conservative groupings sent an open letter to Chancellor Angela Merkel, urging her to change the German government’s position on Nord Stream 2 (Auštrevičius, Bütikofer, 2018). Unlike most other EU states, Denmark is not dependent on external energy suppliers. It is self-sufficient and has low CO2 emissions. DONG expanded offshore wind power and other non-hydro renewable energy generation. According to the DEA (2017: 3, 7), the Danish green sector employed 67,000 people in 2015, and wind turbines can ‘produce more than the domestic demand’. Natural gas still fuelled about 25 per cent of heating. Transition towards an entirely green energy mix advanced when DONG was renamed Ørsted and began divesting itself of fossil fuels. The Danish state retained 50.1 per cent ownership. DONG’s oil and gas business was acquired by INEOS Upstream Ltd. Denmark now supports an EU energy policy that actively implements diversification of sources and transit countries. According to the former Rasmussen gov­ ernment, Nord Stream 2 contradicted the philosophy and goal of a 5 In 2017, Dong completed a corporate transformation and became Ørsted, specialising in green energy. According to Gazprom, in 2018 it supplied 1.72 bcm of gas to Ørsted. See Gazprom (2020) at http://www.gazpromexport.ru/e n/partners/denmark/. 3 S. Wood and O. Henke Energy Policy 148 (2021) 111991 European energy policy based on solidarity between members and with immediate neighbours. Russia would export more gas to the EU and Germany would acquire a dominant position as the entry and distribu­ tion point. Slovakia and Ukraine would lose transit revenue. 139 km–180 km) and issues or refuses permits on behalf of the state. The original application was for a ‘Base Case Route’ through Denmark’s territorial waters, 12 nautical miles off the coast, passing Bornholm Is­ land. The company provided an Environmental Impact Assessment (EIA) with the application in April 2017. The EIA described project charac­ teristics and technical information, gave ‘assessments of transboundary impacts’ to neighbouring jurisdictions, and outlined ‘measures to pre­ vent or mitigate potential adverse environmental impacts’ (DEA 2019a; Nord Stream 2, 2019). From January 2018, an amendment to the Continental Shelf Act gave the Danish Ministry of Foreign Affairs the right to recommend whether applications for infrastructure projects needed inspection beyond that provided by the DEA or could remove it as the main authority. The amended Act entered into force with retroactive effect only for the Nord Stream 2 project. 4.2. Danish domestic politics Danish civil society echoed ministerial and political party reserva­ tions about Nord Stream 2. One group asked Danes to petition Prime Minister Rasmussen ‘to stop the pipeline from hell!’ Their argument combined environmentalism and disapproval of the Putin regime: We call on you to block the construction of the Russian-German gas pipeline Nord Stream 2. It will devastate a pristine nature reserve and massively solidify Russia’s hold over Europe … shift Europe away from its dependence on Russian gas and towards renewable energy! … with this pipeline passing by a small Danish island [Denmark] has the sovereign right to stop the project. Denmark seems ready to do this but is worried about standing up to Russia and Germany. Let’s give them the support of millions … and deliver our call straight to Denmark’s Prime Minister (AVAAZ 2019). Pursuant to Art. 79 of UNCLOS 1982, all states are entitled to lay pipelines on the continental shelf in accordance with the provisions of that article. The state may therefore not impede the laying or maintenance of pipelines on grounds other than those including the exploration of the continental shelf, the exploitation of its natural resources and the prevention, reduction and control of pollution from pipelines, c.f. Art. 79(2). Art. 79 does however not affect the right of the coastal state to establish the conditions for pipelines entering its territorial sea, c.f. Art. 79(4) (WSCO 2018, emphasis added). Rasmussen’s government responded, essentially by doing nothing. Rasmussen expressed that he would ‘do whatever he can to delay the project, even if he cannot prevent it’ (Boucart 2019). President of the Social Democratic Party, Mette Frederiksen, was critical when part of the opposition. She argued that energy policy entailed much more than energy, as confirmed by the ‘aggressive behaviour of Russia’. Danish approval of Nord Stream 1 had treated that venture as ‘a purely com­ mercial matter’, something that ‘must not happen again’ (Hansen 2017). Some analysts perceived that when it became the main force in the new government from June 2019, the Social Democratic Party would assert itself vis-à-vis the Trump administration. There were no indications that it would advocate for Nord Stream 2. Not all Danish parties oppose the project. The Dansk Folkeparti (DF) is ’positively inclined’. Its foreign affairs spokesperson, Søren Espersen, averred that Denmark had relations with companies ‘owned by the Chinese communist state’ and other ‘dictator states’. Nord Stream 2 AG was ‘a Russian company out to make some good business and deliver energy to the West. I don’t see that as a problem’. In contrast, (the misleadingly named) Radikale Venstre, a centrist party, wants Europe to be independent from Russian gas. The Kremlin could instrumentalize Nord Stream 2, for which there were precedents, said a spokesperson, Martin Lidegaard. DF was ‘naïve’ to believe that Nord Stream 2 was a ‘purely commercial’ venture. Lidegaard, a former Foreign Minister and Climate and Energy Minister, claimed that ‘In Russia, all energy policy is security policy’. More to the point, ‘the Russians have really abused their massive gas supply to Europe. They use it as a tool of security policy, they use it economically, and they threaten other European nations, such as Ukraine, to tow the Russian line’ (Copenhagen Post 2017a). More Danish demands to halt Nord Stream 2 were heard after the poisoning of Russian opposition politician, Alexei Navalny (Jarlner 2020). Nord Stream 2 AG began exploring other possible routes outside Danish territorial waters though within the EEZ. Such a route would not require a parliamentary vote and the DEA could only reject projects on safety, environmental or logistical grounds. Supported by relevant as­ sessments and survey works, the company identified a route passing northwest of Bornholm (Nord Stream 2, 2019). In August 2018, the company submitted a second application. It claimed that permission processes for both routes, which included consultations with the public and expert authorities, nationally and internationally, showed that it had fulfilled all technical and environmental prerequisites, warranting a permit for either route. On March 26, 2019, the DEA asked Nord Stream 2 AG to assess a third option, without formal rejection of the two pending applications. The company submitted a third application and an EIA on April 15, 2019. This route would run through Denmark’s EEZ, east and south of Bornholm. In May 2019, the DEA published the EIA for this ‘Southeastern’ third route. The report again presented technical details, physio-chemical, biological, and socio-economic assessments, transboundary issues, and measures to prevent and mitigate adverse impacts. When the DEA informed of a forum to be held in Ronne on Bornholm, on June 19, 2019, it reminded people that ‘On January 1, 2018, a new law came into force, which includes transit pipelines, and thus also the Nord Stream II project. The law means that before a permit for a transit pipeline in the territorial waters can be issued, the Foreign Minister must assess if the project is compatible with Denmark’s foreign, security and defence policy interests’. The DEA noted that Nord Stream 2 AG had made three applications before mentioning as a ‘general’ point that ‘Only one permit can be granted for the project. In relation to the routes on the continental shelf, a permit can only be issued when it has been clarified which of the routes is the most optimal from an environmental and safety perspec­ tive’ (DEA 2019b).6 The public, state authorities, and interested orga­ nizations, were invited to comment or raise questions until July 10, 2019, later extended to 17 July, under the auspices of the Espoo 5. Route options and permits Construction and operation of pipelines that transport hydrocarbons from outside Denmark through Danish territorial waters and on the Danish Continental Shelf require permits pursuant to the Continental Shelf Act (2005), Danish sovereignty, and an Administrative Order on Pipeline Installations. Entities seeking permits must submit applications to the DEA, which evaluates them (in this case a submarine stretch of 6 Bornholm had revived significance for a different if connected reason. The Red Army occupied the island for almost a year from 9 May 1945. Unable to militarily challenge the Soviet Union, Denmark suffered a ‘national humilia­ tion’ until a diplomatic note to the Soviet government initiated a withdrawal. Some analogous aspects resonate in the politicization of Nord Stream 2 (Pliusnin 2018). 4 S. Wood and O. Henke Energy Policy 148 (2021) 111991 When, on October 30, 2019, the DEA finally issued a permit for construction in the Danish EEZ, it contained 34 conditions and a four week window for lodging complants (DEA 2019c). The DEA’s responses to objections from Latvia, Lithuania, Poland and environmental groups, were technocratic, describing them as ‘not relevant’ to the process or effects of laying a gas pipeline in the Danish EEZ (DEA 2019d). Denmark abided by legal bases (Ecolex 2011; Fao.org, 2005; Fao.org, 2015). At a meeting with OSCE Secretary-General, Thomas Greminger, Russian Foreign Minister, Sergei Lavrov, welcomed the decision as ‘a responsible approach’, citing Putin as saying it was ‘prompted by the interests of Europe’ and that Denmark had ‘joined the consensus that has long been formed on Nord Stream 2’. Lavrov added that ‘If someone really wants to see some political signal, probably that signal might be that economic and commercial projects should be free from any politicization and should not become pawns in geopolitical games’ (Russian Ministry of Foreign Affairs 2019). In the 49-page document addressed to Warnig granting approval for the pipeline, the DEA declared that the ‘permit does not cover necessary permits, approvals, etc. pursuant to any other legislation, nor does it exempt Nord Stream 2 AG from the obligation to obtain the necessary permits and approvals pursuant to other legislation’ (DEA 2019c: 2). There are stipulations requiring pipelaying vessels to have certain equipment. The DEA ‘assumed that laying will be carried out using a lay vessel equipped with dynamic positioning (DP vessel)’ and the ‘Laying of the pipelines will be carried out using a conventional S-laying tech­ nique from a lay vessel with dynamic positioning (DP vessel) or an anchored vessel. Nord Stream 2 AG expects one DP vessel to be used’ (DEA 2019c: 4, 14). The permit also states: Fig. 1. Nord Stream 2 pipeline route options. Source: Global Construction Review Convention (UN 1991).7 Its terms included that ‘The public (including environmental NGOs) has a right’ to be informed and to express its comments about decisions which can affect their environment, even if they are taken by a foreign country. States are required to evaluate the environmental impact of industrial projects when such projects can affect the environment of another state (Fig. 1 and 2). Other relevant considerations include the Danish Maritime Author­ ity’s work on ‘Blue Denmark’s’ first Maritime Spatial Plan (DMA 2020) in alignment with an EU directive (EU 2014), and the high volume of dumped wartime munitions in the immediate area, which entail a last­ ing physical effect and risk (Knobloch et al., 2013; Szarejko and Namieśnik 2009) (Fig. 3). Based on compliance with environmental and safety considerations, approval of route three seemed likely. Nord Stream 2 AG complained that it was incomprehensible why there was no decision since the amended Danish Continental Shelf Act entered into force. Moreover, why was there no decision on the second route, even though there were no relevant objections? The timing of Danish evaluation and decisionmaking processes impacted on the project, and especially on Gazprom. Its transit contract with Ukraine’s Naftogaz expired at the end of 2019. If Nord Stream 2 was not then operational, Gazprom had to negotiate a new contract, when it intended to terminate its use of Ukrainian infra­ structure. In June, Gazprom board member, Sergey Kuznets, announced that ‘Denmark’s reluctance to give its consent could result in losses that Denmark would sooner or later be forced to compensate’. DEA spokes­ person, Ture Falbe-Hansen, said the ‘immediate assessment is that a southeastern route is more appropriate based on a number of environ­ mental and safety parameters such as impact on shipping and Natura 2000 areas’. The DEA had ‘no further comments to the statement by Gazprom’ (Jamshaid 2019). Nord Stream 2 AG formally withdrew its application for a pipeline through Danish territorial waters. Company CEO, Mathias Warnig, said it was ‘obliged to take this step because in more than two years since we filed this application, the former Danish government had not given any indication of coming to a decision’. The company wanted to remove the Danish Foreign Ministry from influence over the process, leaving the DEA as the sole decision-maker (Ger­ opoulos 2019). Warnig threatened to sue Denmark and the EU. To minimise the risk of encountering unexpected chemical munitions in connection with pipe-laying, a preliminary investigation will be carried out prior to laying … In addition, a remotely operated vessel (ROV) will be used … The route has been adapted to take account of munitions that have been encountered along the proposed NSP2 route, NSP2 route V1 and NSP2 route V2 (DEA 2019c: 21). The specialist Allseas ship Pioneering Spirit was near Bornholm when US sanctions resulted in it ceasing pipelaying in December 2019. That caused further logistical and technical problems for Nord Stream 2. From May 2020, replacement Russian vessels Akademik Cherskiy and Fortuna arrived at the German port of Mukran. The latter departed to Rostock (Marinetraffic.com, 2020a; Marinetraffic.com, 2020b). After another delay, in July the DEA approved Nord Stream 2 AG’s request to employ an anchoring vessel and forego a requirement for dynamic positioning. Appeals could be submitted until August 3, 2020. Denmark also imposed a halt on construction work because of fish spawning (Möller 2020). This imposed cessation was to last until the end of September, later than notified in the permit. Weather conditions also need to be sufficiently favourable for work to be carried out. Apart from preparations in German waters, at time of writing there was no pipe­ laying in 2020, leaving the approximately 160 km stretch that remained at the end of 2019 still to be constructed as 2021 approached. 6. Denmark, Poland, and the Nordic Alternative Denmark understands the Polish interest in an ‘Energy NATO’, whose terminology fuses resources supply with other geopolitical and strategic attributes, and its scepticism towards Nord Stream 1 and 2 (Bouzarovski and Konieczny 2010; Roth 2011). The states revived plans for a connection to Norway’s gas fields with a new infrastructure, Baltic Pipe (Warsaw Institute 2018). Danish company Energinet and Polish operator, GAZ-SYSTEM S.A., combined to begin operations by October 2022. This project will expand Polish and Danish capacity by up to ten bcm 3 of gas per year. A feasibility study (Ramboll 2017) reported that Baltic Pipe would bring significant socioeconomic benefits to Poland, Denmark, the Baltic region, and Central and Eastern Europe (CEE) more 7 The Espoo Convention, signed at Espoo (Finland) in 1991, is a UN agree­ ment on environmental impact intended to address decisions taken in one country that affect the environment in another. Its full title is Convention on Environmental Impact Assessment in a Transboundary Context. 44 states and the EU have ratified it. 5 S. Wood and O. Henke Energy Policy 148 (2021) 111991 Fig. 2. Detailed map of pipeline routes near Bornholm. Source: Nord Stream 2 AG Fig. 3. WWII munitions near Bornholm Island. Source: Helcom 6 S. Wood and O. Henke Energy Policy 148 (2021) 111991 broadly. The EU included Baltic Pipe among its ‘Projects of Common Interest’ (PCI). It will enhance the internal gas market and reinforce security of supply. An investment decision ensued in November 2018 after the Danish-Polish consortium launched an ‘Open Season’ process inviting bids for a share of capacity. A first pipeline of 110 km will connect Norway’s Europipe II in the North Sea to a receiving terminal. It will require expansion of the Danish transmission system through con­ struction of an onshore pipeline of about 210 km and a compressor station in Zealand. A 260 km–310 km offshore pipeline will run between Denmark and Poland. Energinet and GAZ-SYSTEM share costs of roughly €2 billion. Denmark’s request of Nord Stream 2 AG to provide a third application came after negotiations between Denmark and Poland resolved a marine border dispute and demarcated an area southeast of Bornholm (Energy Reporters 2019) (Fig. 4 and 5). For Nord Stream 2 to reach Lubmin and Baltic Pipe to reach Poland, somewhere under the Baltic Sea the two pipelines - presuming both are completed - must traverse. Baltic Pipe must pass through either the Swedish or German EEZ. It acquires further relevance due to the refur­ bishment of the Tyra platform in the North Sea. Since 1987, Tyra has been a source of supply for Danish and Swedish gas consumers. It is out of production from September 2019 to July 2022. It is assumed that gas imported from Germany will provide substitute supply. In April 2019, Polish President Andrzej Duda signed the PolishDanish Agreement. Baltic Pipe received €215 million in EU funding through the Connecting Europe Facility (CEF). EU money sends a strong signal. It enables construction of the offshore pipeline connecting gas transmission systems and enhancing of Polish onshore infrastructure (Konarzewska 2019; Forsal 2019). Norwegian gas may flow to Denmark earlier than expected, possibly by January 2022. This would ease pres­ sure during the Tyra redevelopment. Denmark, Poland, and Norway understand Baltic Pipe as strengthening the European gas market. Any help in achieving climate targets is a ‘welcome bonus’, said Torben Brabo, CEO of Energinet Gas TSO (Energinet 2019). Projects encom­ passing existing and planned interconnector pipelines and liquefied natural gas (LNG) terminals in Poland, Lithuania, and Croatia will improve EU energy security. Russian media outlets asserted that Baltic Pipe is a political project and a financial burden with ‘little chance to replace Nord Stream 2’ (Sputnik News 2018a; RT 2018). Baltic Pipe is indeed a political as well as an economic project. It received questioning in Denmark on environmental grounds though has not attracted the level of negative attention that Nord Stream 2 has. Gas sourced from Norway does not generate controversy like Russian gas does. ‘great interest in exporting their gas’. US sanctions had ‘extra-territorial effects’ including on German business (Author Interview, 2019a). A German foreign ministry official said Nord Stream 2 was a private en­ terprise matter, not political, and certainly ‘no project of the federal government’, from which it received no financial support. Essentially it was about ‘cheaper energy’. US LNG would be more expensive. Nord Stream 2 would assist a planned exit from coal and nuclear power. There were ‘certain risks, for example, Ukraine’. The ‘Americans say we must ensure a continuation of a Ukraine gas pipeline’. Ukraine was then receiving a reverse flow of Russian gas from the EU (Author Interview, 2019c). It is difficult to conceive of these aspects as apolitical and apposite to note statements attributed by the Kremlin media site to Sigmar Gabriel, then FRG Vice-Chancellor, Economics Minister, and Energy Minister, in a meeting with Putin in 2015 (Cf. Riley 2016: 16).9 Mr Miller and Mr Matthias Warnig will continue to pursue Nord Stream 2 project. This is in our interests … most important as far as legal issues are concerned is that we strive to ensure that all this remains under the competence of the German authorities … then opportunities for external meddling will be limited. And we are in a good negotiating position on this matter. … to limit political meddling in these issues – you are, of course, aware, this is not just a formality – we need to settle the issue of Ukraine’s role as a transit nation after 2019 … Ukraine’s gas transportation system is not in very good state. And, of course, the financial and political role it will play for Ukraine, as will the backflow of gas. … most important is for German agencies to maintain authority over settling these issues. And then, we will limit the possibility of political interference in this project (Kremlin, 2015). The report implied that Gabriel, and other officers of the then German government, would seek to control decisions of ‘German agencies’, including the independent regulator, and courts, German and EU. The attempt of German and Russian parties to constrain or at least limit ‘political interference’ failed. Instead, politicization was exacer­ bated. The succeeding German government, composed of the same coalition, tried to block revision of the EU directive on gas trans­ portation (EU 2019), which had exempted transit from non-EU sources, until an agreement, at its core a Franco-German compromise, was reached in February 2019. Only then did Germany vote in favour of the Gas Directive amendment in the Council (Gurzu 2019; Yafimava 2019). Opponents, including signatories to the 2018 letter to Chancellor Mer­ kel, argued that ‘Germany’s position on Nord Stream 2 runs counter to the goals of the European Energy Union’. The government position amalgamates responses to commercial interests and emissions targets, resource requirements, the prospect of tariff revenues, and the depen­ dence of Angela Merkel’s CDU-CSU on their ‘pro-Russian’ SPD coalition partners. On the last point, a US official claimed that if a ‘Jamaica coalition’ of CDU-CSU, Greens and FDP (Free Democratic Party) had formed after the 2017 German election, ‘Nord Stream 2 would have been dropped the next day’ (Author Interview, 2019b). Without distribution of gas after it reaches EU territory, Nord Stream 2 is a pipeline to nowhere. In September 2019, the EU’s General Court ruled that an exemption arrangement for distribution of Nord Stream 1 gas through the OPAL connector pipeline, decided by the Commission in 2016, was ‘adopted in breach of the principle of energy solidarity’ and annulled (General Court, 2019). The ruling restricts the volume that Nord Stream 1 can distribute via OPAL to 50 per cent of capacity. Ger­ many appealed to the Court of Justice (CJEU) against the ruling in December 2019 (Germany v Poland C-848/19). If the Court decision is upheld, it will likely impact on distribution via pipelines connecting to 7. Germany and Nord Stream 2 Denmark and Germany initiated the Council of Baltic Sea States (CBSS) (Tassinari 2005: 391). Nearly thirty years later, Germany is the Nord Stream 2 saga’s pivotal and most contradictory actor. It was an engine of European integration though some German political and business figures demur at the EU Energy Union. ‘Grand Coalition’ gov­ ernments of Christian Democratic (CDU-CSU) and Social Democratic (SPD) parties censured Russia over its behaviour towards Ukraine and (some unwillingly) supported EU sanctions against it, while Germany remained Russia’s main economic partner. The current government endorsed Nord Stream 2, though some members are uncomfortable. Advocates contend that partnership with Russia is imperative and emphasise that Nord Stream 2 is a commercial undertaking (Wood, 2020). In June 2019, the Commissioner for Relations with Russia and Central Asia, Dirk Wiese (SPD), avowed that Nord Stream 2 ‘will happen’. He saw no inconsistency in German policy. While Russia had to ‘get its house in order’, loosening ties would cause greater problems. US Ambassador to Germany, Richard Grenell, was ‘no great help with his utterances about Nord Stream 2’.8 In Wiese’s view, the Americans have 8 9 This was either a serious lapse of confidentiality by Russian authorities or it was intentional. Grenell’s tenure as ambassador to the FRG ended in June 2020. 7 S. Wood and O. Henke Energy Policy 148 (2021) 111991 Fig. 4. Norway-Denmark-Poland baltic pipe project. Source: Ramboll Fig. 5. Baltic Pipe pipeline route options. Source: Ramboll 8 S. Wood and O. Henke Energy Policy 148 (2021) 111991 Nord Stream 2, should that project commence delivery.10 Gascade, a Gazprom-Wintershall company, majority owns the EUGAL pipeline, built to pump Nord Stream 2 gas from Lubmin to destinations in Ger­ many, the Czech Republic, and elsewhere in the EU. To comply with unbundling legislation, three transmission operators, Fluxys, Gasunie, and Ontras, were selected. In November 2019, the Bundestag introduced legislation to enable Nord Stream 2 to circumvent hindrances ensuing from the amended Gas Directive (Deutscher Bundestag 2019). Nord Stream 2 AG duly sought a derogation (exemption) from the German regulator (Bundesnetzagentur 2019). When the German regulator rejected the derogation application (Bundesnetzagentur 2020), its de­ cision refuted Sigmar Gabriel’s assurances (as reported by the Kremlin) to Vladimir Putin in 2015 (Fig. 6). strategic interest held by Russia, Germany, Poland, the United States, and the EU, in a ‘purely commercial’ venture. Attempts by German ac­ tors to separate energy from other aspects of relations with Russia contrasts with German exhortations for unity in European policy. Ger­ many assumed the presidency of the EU in the second half of 2020 as controversy around Nord Stream 2, and policy towards Russia, continued to escalate. Nord Stream 2 exacerbated or stimulated new confrontations within the EU and between opponents or supporters of Russia or the US. It also generated trade-offs, some which may not be sustained. An interesting game theoretic analysis (Richman and Ayyilmaz 2019: 8; Cf. Sziklai et al., 2020) posited that the ‘the overall picture is a mixed one. Even as the U.S. shale gas boom and competitive global markets constrain both its politicization and pricing power, Russia retains a certain capacity to exploit its powerful position as a primary supplier to the European market for episodic exercises in politicization’. The US administration, perceived as a promotor of LNG sales to European markets, also has geostrategic concerns. Merkel’s attempted compromise was to build terminals that could receive LNG from the US and other sources. It was recently revealed that German officials had offered to spend $1.2 billion on related infrastructure (Die Zeit, 2020). That does not change whether Russia under its current regime is or is not an energy (or other) security threat. The possibility that it is explains why Nord Stream 2 AG accents the European aspect of the project and underplays the Russian. The company and its backers insist that EU law, pertinently for business arrangements, must be upheld without politicization. Presenting a ‘view from the project developer’, Lissek (2016: 4), contended during the pre-construction phase that: 8. The United States and Nord Stream 2 US disapproval of the first Nord Stream project and attempts to avert construction were ‘brushed aside by key officials in the Commission and the German government’. The outcome intensified ‘US efforts to build a coalition for more gas supply diversity’ (Smith 2010: 11). If the Obama administration was critical of Nord Stream 2, the Trump administration is implacable (cf. Guliyev 2020). The US recognised Denmark’s signifi­ cance in preventing or at least delaying Nord Stream 2 and invested much political energy encouraging it (Copenhagen Post, 2017b). The US is Denmark’s third largest export market and second largest investor. At a time of ‘assertive’ Russian policy in the Baltic region (Samuelsen, 2018: 21), the Danish government (2018: 11) was unequivocal that ‘American global leadership is in Denmark’s national interest and crucial to rules-based international cooperation’. The NATO connection is crucial and impresses the US as indispensable (Mölder 2011; Jakobsen and Rynning 2018; Saxi 2019). Gerhard Schröder averred that American pressure explained the Danish policy of permit delay (Reuters 2019a). He and other supporters of Nord Stream 2 assert that the US opposes the project because it wants to sell LNG into Europe. Russian sources intone that LNG will be more expensive than the gas offered by Gazprom (Sputnik News 2018b). The European Commission was not so concerned about the option of US LNG (European Commission 2019: 23–24). A US official maintained that Nord Stream 2 ‘increases a Russian stranglehold on Europe’ when diversification of sources and energy types were required. It would ‘further weaken Ukraine when it was in conflict with Russia’. In some parts of Europe, threat perception of Russia was ‘appallingly low’, the official claimed (Author Interview, 2019b). Proposals by Republican and Democrat members of the US Congress to penalise entities engaged in the project built on other sanctions against Russia, some supported and regularly prolonged by the EU. By mid-2020, even some opponents of Nord Stream 2 considered that US intervention in EU affairs over the issue was excessive, a position influenced by the unpopularity of the US President. Contrasting reports emerged on an alleged démarche, supported by 24 EU states, against US sanctions (Wetzel 2020; Jakóbik 2020). the rule of law, which is a founding principle of the EU, does not permit arbitrary application of established laws and regulations simply in response to current political sentiment. This would violate many of the very basic values on which the European Union and its member states are founded. Consequently, Nord Stream 2 expects no special treatment or exceptions from established legal practice – either in favour of or against the project. We have full confidence in the authorities of the countries along the route of Nord Stream 2 to apply all relevant legislation with the greatest degree of diligence, reliability, consistency and transparency – including EU law and international conventions. Denmark was later accused of deliberately delaying permit approval to thwart the project (Reuters 2019b). Denmark is a rule of law state, in which cases and decisions are considered within an independent legal system. Russia is not a rule of law state. Arguments that Russia and its state-owned companies should be treated the same as EU member states with no further assessment overlook this point (Fischer 2016). Some debate strives to limit the issue to whether Russia is or is not a reliable supplier of energy resources to the EU. The politics are not so limited, however. A catalogue of transgressions by the Putin regime makes some arrangements with it incompatible with the political and legal norms of rule of law states. According to Tatiana Romanova (2016: 860, 868, 872) the ‘EU trusts the market economy and … an internal market reliant upon law and equal conditions for all … Russia, in turn, adheres to state capitalism’. And ‘Russia’s lack of respect for the rule of law inside the country mars its use of legal instruments’. While Russia accuses the EU of ‘double standards’, ‘Russia’s instrumental use of market approaches leads the EU to accuse Russia of opportunism and non-respect of the spirit of law’. Assisted by corporate allies and politicians in some EU states, the Russian government instrumentalized EU legal frameworks without adhering to international law itself and operating with no effective separation of powers domestically (Allison 2014, 2017). In recent years, that strategy has been vigorously responded to. Conse­ quently, proponents of Nord Stream 2 have gone beyond the EU in seeking favourable resolution. Gazprom announced a new Eurobond issue and confirmed that Nord Stream 2 AG had initiated arbitration 9. Discussion Nord Stream 2 propelled a small Nordic state into a spotlight of highintensity international politics, foisting upon it an improbable influence over the energy and foreign policy agendas of much larger entities. The project accentuated the Baltic Sea as a space of strategic, political, and economic contestation and focused attention on the political and 10 An attempt by Nord Stream AG to have the amended Gas Directive (2019/ 692) annulled failed when the General Court of the European Union (2020). On the same day, the General Court dismissed another action for annulment by Nord Stream 2 AG (T-526/19), finding that it was inadmissible. Further liti­ gation may follow. 9 S. Wood and O. Henke Energy Policy 148 (2021) 111991 Fig. 6. EUGAL pipeline route. Source: Gascade proceedings under UN (UNICTRAL) auspices against the EU. The com­ pany charged that the EU ‘violated obligations’ of the Energy Charter Treaty by ‘approving discriminatory amendments to the Third Gas Directive’ (Russia & CIS Business and Financial Daily 2019; Cf. Jeutner, 2019). In July 2020, a ‘Claimant’s Memorial’ was filed by a London legal firm, asserting the ‘politically motivated’ actions of a ‘coalition of EU actors’ including several CEE states, the European Commission, ‘in particular, DG Energy’, and a ‘significant group of European Parlia­ mentarians’ (Herbert Smith Freehills 2020: 63). The case is pending. energy projects. Denmark’s functioning as a state with authorities that act in accordance with technical and legal criteria, and EU law where it prevails, eventually resulted in a permit for a project that much of its political class and civil society do not favour. Yet the prolonged delay contributed to a situation whereby, at time of writing, Nord Stream 2 is not operating. If it never does the Danish role will be viewed retro­ spectively as decisive. May 23, 2019 was another day without a Danish construction permit for Nord Stream 2. It was also the day when the revised EU Gas Directive entered into force, restricting possible dero­ gations only to pipelines completed before that date. The amended Directive had to be implemented in national regulation by February 24, 2020 (EU 2019). Despite the DEA granting a permit for Nord Stream 2 in late October 2019, the prospect that it will raise other issues should not be discounted. There are many potential policy implications. The nexus of energy policy, foreign and security policy, and law is becoming more intricate and politicized. The Nord Stream 2 saga exposed fissures among member 10. Conclusion and policy implications In its 2016 strategy review and later statements, Denmark outlined a position based on liberal democratic values, geopolitical awareness, and environmental interests. Through its mandated energy agency, Denmark engaged in a form of filibuster, substantially delaying Nord Stream 2, and complicating what was already one of the most contentious of 10 S. Wood and O. Henke Energy Policy 148 (2021) 111991 states and affirmed how inextricable the energy policy field is from other political domains. It highlighted increasing tension between Germany and the USA, and in German domestic politics. If Nord Stream 2 does not commence operation, Germany may have to recalibrate its energy mix and even reconsider proposed exits from nuclear and coal. In such a scenario, the implications could be most serious for Russia and Gaz­ prom. As Romanova (2016: 871) argued, for Russia ‘energy is a strategic good rather than a commodity like others. Russian policy privileges security over the market, a top-down style of problem-solving, state interference and ad hoc solutions … Russian energy supplies to Europe are so important that Russian companies, Gazprom in particular, deserve special treatment’. If Nord Stream 2 AG and Gazprom are not successful through legal avenues, a reconsidering of Russian energy export options, and Russian foreign policy, will likely occur. Casier, T., 2016. Great game or great confusion: the geopolitical understanding of EURussia energy relations. Geopolitics 21 (4), 763–778. Chow, E., Elkind, J., 2009. Where east meets west: European gas and Ukrainian reality. Wash. Q. 32 (1), 77–92. Chyong, C., Noël, P., Reiner, D., 2010. The Economics of the Nord Stream Pipeline System EPRG Working Paper 126. Cambridge University. Continental Shelf Act, 2005 (No. 1101 of 2005) at. https://www.ecolex.org/details/le gislation/continental-shelf-act-no-1101-of-2005-lex-faoc026143/. Copenhagen Post, 2017a. Russian Pipeline Splits Parliament, 27 March at. http://cphpos t.dk/news/russian-gas-pipeline-splits-parliament.htm. Copenhagen Post, 2017b. US Warns Denmark over Russian Gas Pipeline, 8 May. Danish Energy Agency (DEA), 2019a. https://ens.dk/en. DEA, 2019b. Press Release ‘Public Meeting Concerning the EIA for the Nord Stream 2 Natural Gas Pipeline Project Southeast of Bornholm on the Continental Shelf’, 15 April at. https://ens.dk/sites/ens.dk/files/OlieGas/20190619_public_hearing_se_ro ute_nsp2_ramboll_en.pdf. DEA, 2019c. Permit for Nord Stream 2 Gas Pipelines, 30 October (English version). https://ens.dk/sites/ens.dk/files/OlieGas/permit_nord_stream_2.pdf. DEA, 2019d. Summary – Responses – Espoo-Procedure, 30 October at. https://ens. dk/ansvarsomraader/olie-gas/offentliggoerelser-om-olie-gas/tilladelse-til-nord-str eam-2. DEA, 2017. The Danish Energy Model: Innovative, Efficient and Sustainable. DEA, Copenhagen. Danish Government, 2018. Danish Foreign and Security Policy Strategy 2019-2020 (Copenhagen). DMA (Danish Maritime Authority), 2020 [11 March 2020]. https://www.dma.dk/Vaekst /Havplan/pages/default.aspx. Danish Ministry of Defence, 2017. A Strong Defence of Denmark. Proposal for New Defence Agreement 2018-2023 (Copenhagen). https://www.fmn.dk/temaer/fors varsforlig/Documents/proposal-for-new-danish-defence-agreement-2018-2023.pdf. Danish Ministry of Foreign Affairs, 2019. http://um.dk/en. Danish Ministry of Foreign Affairs, 2016. Danish Diplomacy and Defence in Times of Change - A Review of Denmark’s Foreign and Security Policy (Executive Summary). Deutscher Bundestag, 2019. Plenarprotokoll 19/126. Sitzung, p. 126, 13 November. Die Zeit, 2020. Bundesregierung bietet eine Milliarde Euro zur Rettung der Pipeline, 16 September. Doeser, F., 2011. Domestic politics and foreign policy change in small states: the fall of the Danish “footnote policy”. Cooperat. Conflict 46 (2), 222–241. Dong, 2009. Dong Energy Annual Report. Dong, Copenhagen. Ecolex, 2011. Order No. 1133 on Energy Agency’s functions and powers. at. htt ps://www.ecolex.org/details/legislation/order-no-1133-on-energy-agencys-funct ions-and-powers-lex-faoc107667/. (Accessed 15 October 2019). Ellemann-Jensen, U., 2009. The Malignancy that Is Nord Stream. Moscow Times, 18 December. Energinet, 2019. Baltic Pipe Connection May Strengthen Security of Supply during Tyra Platform Redevelopment, 9 January. https://en.energinet.dk/About-our-news/N ews/2019/01/09/En-Baltic-Pipe. Eser, P., Chokani, N., Abhari, R., 2019. Impact of Nord Stream 2 and LNG on gas trade and security of supply in the European gas network of 2030. Appl. Energy 238, 816–830. Energy Reporters, 2019. Danish Agency Hampers Nord Stream 2 Plans, 30 March. European Commission, 2019. Fourth Report of the State of the Energy Union Com(2019), 175 final. European Commission, 2007a. Country Strategy Paper 2007-2013 Russian Federation. European Commission, 2007b. The European Union and Russia: Close Neighbours, Global Players, Strategic Partners. EU, 2014. Directive 2014/89/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 23 July 2014 establishing a framework for maritime spatial planning, 28 August Official Journal of the European Union. L 257/135. EU, 2019. Directive (EU) 2019/692 of the European Parliament and of the Council of 17 April 2019 amending Directive 2009/73/EC concerning common rules for the internal market in natural gas. Official Journal of the European Union L 117 (3 May), 1–7. EU, 2009. ‘Directive of the European Parliament and the Council Concerning Common Rules for the Internal Market in Natural Gas No 2009/73/EC’ and ‘Regulation (EC) 715/2009 of the European Parliament and of the Council on Conditions for Access to the Natural Gas Transmission Networks’. Fao.org, 2005. Act on Safety for Offshore Equipment for Exploration, Production and Transportation of Hydrocarbons (No. 1424 of 2005). http://www.fao.org/faolex/ results/details/en/c/LEX-FAOC099218. (Accessed 15 October 2019). Fao.org, 2015. Denmark. Offshore safety act (No. 831 of 2015). http://www.fao.org/fao lex/results/details/en/c/LEX-FAOC125578. (Accessed 15 October 2019). Fischer, S., 2016. Nord Stream 2: trust in Europe. Pol. Perspect. 4 (4), 1–4. Forsal, 2019. Zastrzyk Unijnych Pieniędzy Z CEF Dla Baltic Pipe, 25 April at Forsal.pl. Frederiksen, C., 2019. Danish defence in the midst of change. In: Fischer, K., Mouritzen, H. (Eds.), Danish Foreign Policy Review 2019. DIIS 2019, Copenhagen, pp. 32–45. Frederiksen, C., 2018. The role of Denmark in a more complex security environment. In: Fischer, K., Mouritzen, H. (Eds.), Danish Foreign Policy Review 2018. DIIS 2018, Copenhagen, pp. 32–43. Gazprom, 2020. Denmark. http://www.gazpromexport.ru/en/partners/denmark/. (Accessed 21 May 2020). Gazprom, 2011. Gazprom and DONG Energy to Cooperate in Gas-Fired Power Generation, 26 April at. https://www.gazprom.com/press/news/2011/april/artic le111721/. (Accessed 19 April 2020). Author contributions Conceptualization: Steve Wood and Otto Henke. Data curation: Steve Wood and Otto Henke. Formal analysis: Steve Wood and Otto Henke. Funding acquisition: Steve Wood. Investigation: Steve Wood and Otto Henke. Methodology: Steve Wood and Otto Henke. Project administration: Steve Wood. Roles/Writing - original draft: Steve Wood and Otto Henke. Writing - review & editing: Steve Wood. Funding Steve Wood thanks the Alexander von Humboldt Foundation for valuable assistance. Steve Wood thanks the Goethe Universität Frankfurt and Professor Dr Reinhard Wolf for valuable assistance. Declaration of Competing Interest The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper. References Allison, R., 2014. ‘Russian “deniable” intervention in Ukraine: how and why Russia broke the rules’. Int. Aff. 90 (6), 1255–1297. Allison, R., 2017. Russia and the post-2014 international legal order: revisionism and realpolitik. Int. Aff. 93 (3), 519–543. Ashford, W., 2019. NotPetya Offers Industry-wide Lessons, Says Maersk’s Tech Chief. Computer Weekly, 7 June at. www.computerweekly.com/news/252464773/NotPet ya-offers-industry-wide-lessons-says-Maersks-tech-chief. Auštrevičius, P., Bütikofer, R., et al., 2018. Joint Open Letter Regarding Nord Stream 2, 5 November, Brussels. Author Interview, 2019a. Dirk Wiese, FRG Commissioner for Relations with Russia and Central Asia. Berlin, May. Author Interview, 2019b. US Representation. Germany, June. Author Interview, 2019c. German Foreign Ministry. Berlin, May. AVAAZ, 2019. Denmark: Stop the Pipeline from Hell. https://secure.avaaz.org/campa ign/en/stop_nord_stream_14/. (Accessed 5 August 2019). Baran, Z., 2007. EU energy security: time to end Russian leverage. Wash. Q. 30 (4), 131–144. Boucart, T., 2019. Nord Stream 2: Can Denmark Make Berlin and Moscow Tremble?, 13 April at. https://www.thenewfederalist.eu/nord-stream-2-can-denmark-make-berlin -and-moscow-tremble. Bouzarovski, S., Konieczny, M., 2010. Landscapes of paradox: public discourses and policies in Poland’s relationship with the Nord Stream pipeline. Geopolitics 15 (1), 1–21. Bozhilova, D., Hashimoto, T., 2010. EU-Russia energy negotiations: a choice between rational self-interest and collective action. Eur. Secur. 19 (4), 627–642. Bundesnetzagentur, 2020. Beschluss: BK7-20-004-B1, 17 March at. https://www.bundes netzagentur.de/DE/Service-Funktionen/Beschlusskammern/1_GZ/BK7-GZ/2020/B K7-20-0004/BK7-20-0004_Verfahren.html. (Accessed 1 August 2020). Bundesnetzagentur, 2019. Antrag der Nord Stream AG zur Freistellung von der Regulierung gemäß § 28b EnWG, 23 December at. https://www.bundesnetzagentur. de/DE/Service-Funktionen/Beschlusskammern/1_GZ/BK7-GZ/2019/BK7-19-0108/ BK7-19-0108_VerfEinleit.html?nn=926986. 11 S. Wood and O. Henke Energy Policy 148 (2021) 111991 Gazprom/Dong, 2006. ‘“Gazprom” to Deliver Gas to Denmark Vis North European Gas Pipeline’ joint press release, 19 June. General Court of the European Union, 2020. Order of the general court of 20 may 2020 – Nord Stream 2 v parliament and Council (case T-526/19 and case T-530/19). Official Journal of the European Union, 27 July. General Court of the European Union, 2019. The General Court Annuls the Commission Decision Approving the Modification of the Exemption Regime for the Operation of the OPAL Gas Pipeline. Press Release 107/19, 10 September at curia.europa.eu. (Accessed 10 November 2019). Geropoulos, K., 2019. ‘Nord Stream 2 Pulls Plug on Danish Route for Russian Gas. Neweurope eu 2 July at. https://www.neweurope.eu/article/nord-stream-2-pullsplug-on-danish-route-for-russian-gas/. Goldthau, A., Sitter, N., 2020. ‘Power, authority and security: the EU’s Russian gas dilemma’. J. Eur. Integrat. 42 (1), 111–127. Goldthau, A., Sitter, N., 2015. A Liberal Actor in a Realist World: the European Union Regulatory State and the Global Political Economy of Energy. Oxford University Press, Oxford. Gotkowska, J., Szymanski, P., 2016. The Nordic Countries and Nord Stream 2: between Scepticism and Neutrality OSW Commentary, vol. 223, 12 October. Government of Poland, 2007. Letter from the Minister of Economics, Piotr Wozniak, to the Managing Director of Nord Stream AG, Matthias Warnig, 22 March at. https:// web.archive.org/web/20070927104520/http://www.mgip.gov.pl/NR/rdonlyres/7 6F93564-0C57-4AFD-B2B7-4FB8839BE8C5/31362/070322_ListMPWdoNordStr eam2.pdf. Guliyev, F., 2020. Trump’s “America first” energy policy, contingency and the reconfiguration of the global energy order. Energy Pol. 140 https://doi.org/ 10.1016/j.enpol.2020.111435. Gurzu, A., 2019. France and Germany Split over Nord Stream 2 Pipeline. Politico, 7 February at www.politico.eu/article/france-and-germany-split-over-nord-stream2-pipeline-russian-gas-regulation/. Hansen, L., 2017. Russisk Gasledning: Mette F Opfordrer Løkke Til Handling. Netavisen Pio, 17 January at. https://piopio.dk/mette-f-opfordrer-handling. Herbert Smith Freehills, 2020. ‘Claimant’s Memorial’ to ‘An Ad Hoc Arbitration under the Rules of Arbitration of the United Nations Commission on International Trade Law, 1976, and Pursuant to the Energy Charter Treaty PCA Case No. 2020-07 between Nord Stream 2 AG and The European Union’ 3 July. Hermanson, A.-S., 2018. Energy security in a multi-level governance perspective. Mar. Pol. 98, 301–308. Jakóbik, W., 2020. Misinformation in Defence of Nord Stream 2 and a Demarche that Wasn’t, 31 August at. https://biznesalert.com/misinformation-in-defence-of-nord -stream-2-and-a-demarche-that-wasnt/. Jakobsen, P.V., Rynning, S., 2018. Denmark: happy to fight, will travel. Int. Aff. 94 (5), 877–895. Jamshaid, U., 2019. Denmark Prioritizes Environment, Security Making Decisions on Nord Stream 2-Energy Agency. Urdu Point, 19 June at. www.urdupoint.com/en/wor ld/denmark-prioritizes-environment-security-mak-648864.html. Jarlner, M., 2020. Putin har opbygget en mafiastat. Politiken, 4 September. Jeutner, V., 2019. Amendments, annexations, alternatives: Nord Stream 2’s contemporary status under EU and international law. J. World Energy Law Bus. 12 (6), 502–512. Jirušek, M., 2020. The attitude of the Visegrad group countries towards Russian infrastructural project in the gas sector. Energy Pol. 139 https://doi.org/10.1016/j. enpol.2020.111340. Karm, E., 2008. Environment and energy. The Baltic Sea Gas Pipeline’ Journal of Baltic Studies 39 (2), 99–121. Knobloch, T., Beldowski, J., Böttcher, C., Söderström, Rühl, N.-P., Sternheim, J., 2013. Chemical Munitions Dumped in the Baltic Sea. Report of the Ad Hoc Expert Group to Update and Review the Existing Information on Dumped Chemical Munitions in the Baltic Sea. HELCOM MUNI, Helsinki). Konarzewska, N., 2019. Baltic pipe to cut Poland’s gas dependence on Russia. Eurasia Daily Monitor 16, 69. Krickovic, A., 2015. When interdependence produces conflict: EU-Russia energy relations as a security dilemma. Contemp. Secur. Pol. 36 (1), 3–26. Lidskog, R., Elander, I., 2012. Sweden and the Baltic Sea pipeline: between ecology and economy. Mar. Pol. 36, 333–338. Lissek, U., 2016. Regulation of Nord Stream 2: Rule of Law, Equal Treatment and Due Process: A View from the Project Developer. CEPS, Brussels, 15 November. Maltby, T., 2013. European Union energy policy integration: a case of European Commission policy entrepreneurship and increasing supranationalism. Energy Pol. 55, 435–444. Marinetrafficcom, 2020a. www.marinetraffic.com/en/ais/details/ships/shipid:8 99194/mmsi:273399760/imo:8770261/vessel. AKADEMIK_CHERSKIY [22 May]. Marinetrafficcom, 2020b. https://www.marinetraffic.com/en/ais/details/ships/shipi d:4677206/mmsi:273395690/imo:8674156/vessel. FORTUNA [16 September]. Mellander, M., Mouritzen, H., 2016. Learning to assert themselves: small states in asymmetrical dyads: two Scandinavian dogs barking at the Russian bear. Cooperat. Conflict 51 (4), 447–466. Mölder, H., 2011. The cooperative security dilemma in the Baltic Sea region. J. Baltic Stud. 42 (2), 143–168. Möller, M., 2020. Nord Steam 2: Pipeline-Schach in der Ostsee. Nord Magazin, 23 July at. https://www.ndr.de/nachrichten/mecklenburg-vorpommern/Nord-Strea m-2-Pipeline-Schach-in-der-Ostsee,nordstream404.html. Nord Streamcom, 2013. Fact Sheet: Nord Stream by Numbers (Zug: Nord Stream.Com). Nord Stream 2, 2019. In: www.nord-stream2.com/permitting-denmark/danish-permitt ing-process/. Platts, 2020a. Russian Gas Supplies via Ukraine to Pick up as Delivery Talks Complete: Source, 5 February at. https://www.spglobal.com/platts/en/market-insights/vide os/market-movers-europe/091420-opec-bp-oil-tanker-floating-storage-sugar-expiryappec. Platts, 2020b. Gazprom Still Eyeing Nord Stream 2 Completion by End-2020/start-2021: Report, 22 June at. https://www.spglobal.com/platts/en/market-insights/latest-ne ws/natural-gas/062220-gazprom-still-eyeing-nord-stream-2-completion-by-end-20 20start-2021-report. Przybyło, P., 2019. The Real Financial Cost of Nord Stream 2. Casimir Pulaski Foundation, Warsaw. Pliusnin, N., 2018. The Power of Memories – the “Bornholm Factor” in the DanishRussian Relationship Then and Now. Uttryck Magazine, 17 December. www.utt ryckmagazine.com/the-power-of-memories-the-bornhom-factor. Ramboll, 2017. Abstract of feasibility study baltic pipe project. https://uk.ramboll.com /projects/rog/baltic-pipe-project-feasibility-study. (Accessed 5 August 2019). Reuters, 2019a. ‘Schroeder Says U.S. Pressure on Denmark the Main Reason for Nord Stream 2 Delay, 7 June at. https://www.reuters.com/article/us-russia-forum-nordst ream2-schroeder/schroeder-says-us-pressure-on-denmark-the-main-reason-for-no rd-stream-2-delay-idUSKCN1T80H4. (Accessed 7 July 2019). Reuters, 2019b. Stine Jacobsen) ‘Nord Stream 2 Says Denmark Tries to Delay Pipeline as it Seeks Third Route Option, 15 April at. https://www.reuters.com/article/us-ga zprom-nordstream-2-denmark/nord-stream-2-says-denmark-tries-to-delay-pipeli ne-as-it-seeks-third-route-option-idUSKCN1RR15F. RFE/RL, 2019. Russia, Ukraine, reach five-year gas-transit deal, 30 December. https ://www.rferl.org/a/long-russia-ukraine-reach-five-year-gas-transit-de. Richman, J., Ayyilmaz, N., 2019. Can the US and Europe contain Russian power in the European energy market? A game theoretic approach. Energy Strategy Reviews 26. https://doi.org/10.1016/j.esr.2019.100393. Richter, P., Holz, F., 2015. All quiet on the eastern front? Disruption scenarios of Russian natural gas supply to Europe. Energy Pol. 80, 177–189. Riley, A., 2016. Nord Stream 2: A Legal and Policy Analysis. CEPS Special Report 151. CEPS, Brussels. Romanova, T., 2016. Is Russian energy policy towards the EU only about geopolitics? The case of the third liberalisation package. Geopolitics 21 (4), 857–879. Roth, M., 2011. Poland as a policy entrepreneur in European external energy policy: towards greater energy solidarity vis-à-vis Russia? Geopolitics 16 (3), 600-265. Russian Business Today, 2019. Denmark Still Deciding on Nord Stream II Approval, 7 March at. https://russiabusinesstoday.com/energy/denmark-still-deciding-on-nordstream-2-approval/. Russia & CIS Business and Financial Daily, 2019. Nord Stream 2 AG, as promised, files claim against EU within Energy Charter Treaty, 11 November. Russian Ministry of Foreign Affairs, 2019. Foreign Minister Sergey Lavrov’s Remarks and Answers to Media Questions at a Joint News Conference Following Talks with OSCE Secretary General Thomas Greminger. Moscow, 31 October. www.mid.ru/en/w eb/guest/meropriyatiya_s_uchastiem_ministra/-/asset_publisher/xK1BhB2bUjd3/ content/id/3879821. (Accessed 2 November 2019). RT, 2018. Poland Plans to End Dependence on Russian Energy with Own Baltic Pipeline – Report, 15 February at. www.rt.com/business/418895-poland-build-own-gas-pipel ine/. Samuelsen, A., 2018. The international situation and Danish foreign policy in 2017. In: Mouritzen (Ed.), Danish Foreign Policy Review, pp. 14–31, 2018. Saxi, H.L., 2019. The rise, fall and resurgence of Nordic defence cooperation. Int. Aff. 95 (3), 659–680. Schmidt-Felzmann, A., 2020. Gazprom’s Nord Stream 2 and diffuse authority in the EU: managing authority challenges regarding Russian gas supplies through the Baltic Sea. J. Eur. Integrat. 42 (1), 129–145. Schmidt-Felzmann, A., 2011. EU member states’ energy relations with Russia: conflicting approaches to securing natural gas supplies. Geopolitics 16 (3), 574–599. Smith, K., 2010. Russia-europe Energy Relations. Implications for US Policy. CSIS, Washington. http://csis.org/publication/russia-europe-energy-relations. Sputnik News, 2018a. Why Poland’s Baltic Pipe Is No Alternative to Nord Stream 2, 19 February at. https://sputniknews.com/analysis/201802191061815556-poland-russ ia-nord-stream/. Sputnik News, 2018b. Polish President Urges Germany to Abandon Nord Stream 2 Project, Buy More US LNG, 24 October at. https://sputniknews.com/europe/20181 0241069161940-germany-polish-president-nord-stream-2/. Sytas, A., 2016. EU Leaders Sign Letter Objecting to Nord Stream-2 Gas Link, 17 March at. https://www.reuters.com/article/uk-eu-energy-nordstream/eu-leaders-sign-lette r-objecting-to-nord-stream-2-gas-link-idUKKCN0WI1YV. Szarejko, A., Namieśnik, J., 2009. The Baltic Sea as a dumping site of chemical munitions an chemical warfare agents. Chem. Ecol. 25 (1), 13–26. Sziklai, B., Kóczy, L., Csercsik, D., 2020. ‘The Impact of Nord Stream 2 on the European Gas Market Bargaining Positions’ Energy Policy 144 at. https://doi.org/10.1016/j. enpol.2020.111692. Tassinari, F., 2005. The European sea: lessons from the Baltic Sea region for security and cooperation in the European neighborhood. J. Baltic Stud. 36 (4), 387–407. Thorhallssen, B., Wivel, A., 2006. Small states in the European union: what do we know and what would we like to know? Camb. Rev. Int. Aff. 19 (4), 651–668. Tynkkynen, N., 2018. ‘The “Russian Issue” in transnational governance of the Baltic Sea environment: analysis of drivers and constraints of Russia’s participation’. Mar. Pol. 98, 220–226. Tynkkynen, N., 2017. The Baltic Sea environment and the European union: analysis of governance barriers. Mar. Pol. 81, 124–131. United Nations, 1991. Convention on Environmental Impact Assessment in a Transboundary Context (New York). 12 S. Wood and O. Henke Energy Policy 148 (2021) 111991 Vatansever, A., 2017. Is Russia building too many pipelines? Explaining Russia’s oil and gas export strategy. Energy Pol. 108, 1–11. Warsaw Institute, 2018. Baltic Pipe. From Idea to Decision Special Report 21 May (Warsaw). Wetzel, D., 2020. EU bildet Abwehrfront gegen USA im Streit um Nord Stream 2. Die Welt, 13 August at. https://www.welt.de/wirtschaft/plus213529196/Sanktionsdro hung-EU-bildet. Whist, B., 2008. Nord Stream: Not Just a Pipeline. Fridtjof Nansen Institute, Lysaker. Wigell, M., Vihma, A., 2016. Geopolitics versus geoeconomics: the case of Russia’s geostrategy and its effects on the EU. Int. Aff. 92 (3), 605–627. Wood, Steve, 2010. Europe’s Energy Politics. J. Contemp. Eur. Stud. 18 (3), 307–322. https://doi.org/10.1080/14782804.2010.507916. Wood, Steve, 2013. Prestige in world politics: History, theory, expression. Int. Polit. 50 (3), 387–411. https://doi.org/10.1057/ip.2013.13. Wood, Steve, 2020. ‘“Understanding” for Russia in Germany: international triangle meets domestic politics’. Camb. Rev. Int. Aff. (online first) https://doi.org/10.1080/ 09557571.2019.1703647. Wrange, J., Bengtsson, R., 2019. Internal and external perceptions of small state security: the case of Estonia. Eur. Secur. 28 (4), 449–472. WSCO, 2018. Amendments to the Danish Continental Shelf Act 2018. http://wsco.dk/ dk/download/Amendment-to-the-DK-CSA.pdf. Yafimava, K., 2019. Gas Directive Amendment: Implications for Nord Stream 2. Oxford Institute for Energy Studies), Oxford. Energy Insight 49. Youngs, R., 2020. EU foreign policy and energy strategy: bounded contestation. J. Eur. Integrat. 42 (1), 147–162. 13