SWEDEN APPROVES NORD STREAM PIPELINE

UNCLAS SECTION 01 OF 02 STOCKHOLM 000694 SIPDIS E.O. 12958:N/A TAGS: ENRG SENV PREL RU GM SW SUBJECT: SWEDEN APPROVES NORD STREAM PIPELINE STOCKHOLM 00000694 001.2 OF 002 ¶1. Summary: On November 5, the Government of Sweden approved the request by Nord Stream AG to lay two pipelines to transport natural gas through international waters within Sweden's economic zone in the Baltic Sea. The pipeline would supply Germany with natural gas from Russia. In announcing the decision, Environment Minister Carlgren stressed the strict environment conditions that Nord Stream must meet and argued that Sweden had no choice under international law but to approve the pipeline. The political opposition, however, has been quick to criticize the decision on both environmental and strategic grounds. Although two key Swedish government agencies that reviewed the pipeline proposal issued opposing advice on the route, there are currently no indications that the government's approval of the pipeline will be appealed. End Summary. ¶2. In his press conference, Minister for Environment Andreas Carlgren argued that the government had no choice under international law but to approve the pipelines once environmental concerns had been addressed. The government said the Law of the Sea gives all states the right to lay pipelines in international waters and on the continental shelf of a coastal state. The government argued that its room to maneuver was thus more limited than when it considers applications concerning Swedish territorial waters or construction in Sweden. In his press release, Carlgren wrote that, "Sweden has a long tradition of compliance with international law and conventions. This will not be broken." Carlgren told the press that, "No serious Swedish government would breach international law and say no to the pipeline." ¶3. Carlgren's press release went to great lengths to stress that safeguarding the Baltic Sea environment remains a government priority. Carlgren said the government set strict requirements for Nord Stream, including that the location of the pipelines be determined according to the coordinates set by the Geological Survey of Sweden; and requiring Nord Stream have a control program for monitoring activities, to be produced in consultation with the Swedish agencies concerned. Moreover, permission for "muddiness," caused by work on the seabed in connection with laying each pipeline, cannot exceed 15 mg/liter at the border between Hoburgsbank and Norra Midsjobank. Other requirements include operations taking place in accordance with the commitments made by Nord Stream in its application and supplements, such as not undertaking construction work in areas that are important for cod spawning during the May-October period. Nord Stream is also expected to take full responsibility for respecting military remains when constructing and operating the pipelines. If applicable, Nord Stream is responsible for sharing information and planning phase-outs and restorations of the environment. ¶4. Carlgren said his government had done a tough environmental assessment during its 23-month review of the application and consultations with the Nord Stream consortium. Carlgren concluded that, "There are now a number of conditions and commitments from the company to safeguard the environment, fisheries and shipping of the Baltic Sea. The impact on the Baltic Sea environment, according to the national government agencies, will be extremely limited, and only during a brief period in connection with construction. The Government thus considers that the route applied for is compatible with Sweden's obligations to protect and preserve the marine environment." ¶5. Carlgren admitted he had been skeptical of the process previously, "I was from the start convinced that the pipelines wouldn't meet the environmental demands. But after a thorough evaluation I am now of the opinion that the environmental conditions are met." Carlgren rebuffed any accusations that Russian President Putin might have pressured Sweden into this approval, and denied that the timing of the decision was linked to the upcoming EU-Russia Summit that the Swedish EU Presidency will host in Stockholm. ¶6. For the pipeline to become a reality, approval is required from Denmark, Sweden, Finland, Germany and Russia. Denmark previously accepted the pipeline, and the media reports that Finland published its approval late on November 5. Swedish Government Agencies Disagree on the Pipeline Route -------------- ¶7. Two key Swedish Government Agencies that reviewed the plans issued opposing evaluations on the location of the proposed pipeline. The Swedish Maritime Administration (Sjofartsverket) expressed concern about having the pipelines too close to shipping lanes where the boats might want to set anchor, while the Swedish Environment Protection Agency (Naturvardsverket) wanted the pipelines closer to shipping lanes to protect the environment. Political Opposition -------------- ¶8. Swedish Green party Spokesperson Peter Eriksson sharply STOCKHOLM 00000694 002.2 OF 002 criticized the decision, saying the government "has chickened out." He claimed the government could have refused the request by demanding more stringent environmental standards. Eriksson also warned that Russia will use this pipeline as a strategic weapon. ¶9. Eriksson is not alone in criticizing the approval on strategic grounds. His opposition Red-Green Alliance issued a press release saying that, "An approval of the natural gas pipeline binds Europe to a dependence of Russian gas, which brings serious environmental risks in a very environmentally sensitive sea area. Every new SEK (Swedish Kronor) billion investment in natural gas delays European investments in renewable energy. It also gives Russia new possibilities to use energy as a tool for putting pressure on the EU." ¶9. Criticism also came from within the ruling government Alliance. The Liberal MP Carl Hamilton found the decision "exceedingly unfortunate" and said it goes against Sweden's long-term interests in energy and security policies. He wrote that "With a pipeline in the Baltic Sea, Putin's Russia will no longer depend on pipelines through Poland, the Baltic states, and Belarus for its energy exports and thereby has the opportunity to further pressure these former satellite states. Such Russian abuse of power on the other side of the Baltic Sea is of course not only unpleasant in general, but should be viewed as an indirect threat against our country." ¶10. Comment: Under the Constitution, it would be possible to appeal the Swedish Government decision to the Swedish Supreme Administrative Court (Regerings ratten). There are no indications that any of the parties opposed to the approval plan to take this route. End Comment. BARZUN