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We Were All Wrong' - How Germany Got Hooked On Russian Energy - Germany - The Gu
We Were All Wrong' - How Germany Got Hooked On Russian Energy - Germany - The Gu
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Thu 2 Jun 2022 06.00 BST
The relationship would benefit both sides: Germany would supply the
machines and high-quality industrial goods; Russia would provide the raw
material to fuel German industry. High-pressure pipelines and their
supporting infrastructure hold the potential to bind countries together, since
they require trust, cooperation and mutual dependence. But this was not just
a commercial deal, as the presence at the hotel of the German economic
minister Karl Schiller showed. For the advocates of Ostpolitik – the new
“eastern policy” of rapprochement towards the Soviet Union and its allies
including East Germany, launched the previous year under chancellor Willy
Brandt – this was a moment of supreme political consequence. Schiller, an
economist by training, was to describe it as part of an effort at “political and
human normalisation with our Eastern neighbours”.
The sentiment was laudable, but for some observers it was a potentially
dangerous move. Before the signing, Nato had discreetly written to the
German economics ministry to inquire about the security implications.
Norbert Plesser, head of the gas department at the ministry, had assured
Nato that there was no cause for alarm: Germany would never rely on Russia
for even 10% of its gas supplies.
Half a century later, in 2020, Russia would supply more than half of
Germany’s natural gas and about a third of all the oil that Germans burned to
heat homes, power factories and fuel vehicles. Roughly half of Germany’s
coal imports, which are essential to its steel manufacturing, came from
Russia.
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In February this year, German Green economic affairs and climate action
minister Robert Habeck said that gas storage facilities owned by Gazprom in
Germany had been “systematically emptied” over the winter, to drive up
prices and exert political pressure. It was a staggering admission of Russia’s
power to disrupt energy supplies.
How did Germany end up making such a blunder? Some argue that Merkel
should have seen that Putin was taking Russia in an authoritarian direction
when he announced his return to the presidency in 2011. After Russia’s
invasion of Ukraine in 2014, Germany made no move to stop importing
Russian gas, and although Merkel threatened to introduce crippling trade
sanctions, German industry convinced her to hold back. But some blame a
more persistent misjudgment stretching back 50 years, based on a fallacy
that authoritarian countries can be transformed through trade.
The Social Democrats have now set up a review into whether the policy of
Ostpolitik – first laid out in a landmark speech in July 1963 by Egon Bahr,
then the closest adviser to West Berlin’s mayor and chancellor-to-be, Willy
Brandt – became deformed over time, especially after securing its great
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achievement, the fall of the Berlin Wall.
From the late 1960s, the Federal Republic of Germany tried to open its own
direct line of communication with the Soviet leadership, even though its
interest in reunification created tensions with the US. When it faced criticism
from the US, Germany was wont to cite its unique status. “I cannot imagine
there is anyone more interested in being allowed to continue working for
detente and balance in Europe than the German people who are forced to live
in two states,” Hans-Dietrich Genscher, then the foreign minister, told the
German Bundestag in January 1980, to great applause.
But after the fall of the Berlin Wall in 1989, why was Germany still so
reluctant to listen to others? A sense of guilt for the atrocities committed
against the Soviet Union during the second world war may have played a
role. Pride, too, that – through Ostpolitik – it had mended its relations with
Moscow. Germany, in a sense, became a double prisoner of its past – bound
both to the horrors it had committed, and to its belief that its response to
those horrors was correct.
T
he conflicts between Germany and the US in the 70s and 80s,
involving two very different presidents, Jimmy Carter and Ronald
Reagan, were some of the most rancorous transatlantic battles
since the second world war. “The disputes were all part of West
Germany showing independence in foreign policy during the cold war, and
that became uncomfortable for some American leaders,” the historian Mary
Elise Sarotte said to me.
Carter and the German chancellor Helmut Schmidt had little respect for each
other. Carter found Schmidt moody, while the chancellor, in his
autobiography, dismissed Carter as an idealistic preacher, who knew nothing
of Europe and was “just not big enough for the game”. The two leaders did
not just grate personally, they disagreed on issues of substance – including
how to protect human rights in Russia. In 1979 Schmidt and Carter came
together to jointly adopt the so-called dual track decision, by which Nato
would upgrade its nuclear weapons based in Europe, while actively seeking
an arms control agreement with Russia. But in other ways their approach was
very different.
Schmidt never lacked self-confidence, but like many Germans of that era he
carried a deep sense of shame arising from painful war memories. He also
believed that the stability of the eastern bloc was in the interest of West
Germany, given Russia’s nuclear capability. In his autobiography he wrote
that he had wanted to develop trading relations with Russia, in order to
foster “a greater Soviet dependence upon European supplies”, in turn
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leading to “more European influence” on Moscow’s policies. And following
the 1973 oil crisis, Schmidt became convinced that the Soviet Union
represented a more reliable supplier of energy for Germany than the Gulf
states.
Carter, by contrast, saw withholding trade as the better way to influence the
Soviets. In July 1978, responding to Moscow’s imprisonment of two Soviet
dissidents, Aleksandr Ginzburg and Anatoly Shcharansky, Carter restricted
US exports of technology for the exploration and development of the Soviet
oil and natural-gas industries.
Vladimir Putin and Gerhard Schröder, then German chancellor, in Moscow in 2004. Photograph:
Yuri Kochetkov/AFP/Getty Images
In a phone call with Carter on 5 March, Schmidt explained his support for the
pipeline by telling the US president, “Those engaging in trade with each
other do not shoot at one another.” It was a restatement of Norman Angell’s
famous pre-first world war theory that the new interdependence of
economies made war unprofitable and thus irrational. According to a note in
his diary, Carter responded: “It is not beneficial for the Europeans to expect
us to provide the stick and for them to compete with one another about
providing the biggest carrot.”
In arguments that echo today’s debates, the US ambassador to the UN, Jeane
Kirkpatrick, complained: “We consistently find in our talks the allies are
already significantly dependent: France for 15% [of its] gas, Germany for
30%.” Schmidt assured the Americans that Germany “can go six months in
the event of a Soviet cut-off”. The forecast now is that, in such an
eventuality, Germany would have to go straight to a form of energy rationing.
Work on the Nord Stream pipeline in Portovaya Bay north-west of St Petersburg in 2010.
Photograph: Dmitry Lovetsky/AP
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The US responded to the Soviet intervention by banning US companies from
helping with the pipeline. In the summer of 1982 Reagan tried to force
European firms to stop working on the pipeline by imposing secondary
sanctions on them. Such sanctions are now a commonplace in the US foreign
policy armoury, particularly over Iran, but then, they were seen as an
incursion into European sovereignty. Thatcher bridled, telling the Commons
“it is wrong” for “one very powerful nation [to] prevent existing contracts
being fulfilled”.
The German advocates of change through trade had won. The US position on
Russia was further weakened when the Berlin Wall fell in 1989. The peaceful
collapse of communism was trumpeted as a vindication for those that had
championed dialogue, and engagement through trade. In a speech to the
Brandt Foundation in March 2008, Steinmeier gave full vent to this view:
“What Ostpolitik in fact achieved – as is now recognised also by those who
criticised it at the time,” he said, “was to make peace in Europe, despite the
difficulties, a degree more secure. For the democracy movements in eastern
Europe it created new possibilities, new scope for action. It was a key factor,
too, in finally ending the confrontation between the two blocs.”
Yet a number of historians and writers believe that this rosy picture of
Ostpolitik is misleading. “The idea that Willy Brandt’s policy of detente
towards Moscow led in a straight line to the fall of the iron curtain and
German unity is at least an over-simplification,” says the historian Jan
Behrends. German journalist Thomas Urban, author of a new book critiquing
Ostpolitik, believes its role in the fall of the wall and German reunification
has been exaggerated: “It was military buildup by Reagan and the flooding of
the market with cheap oil that led to the collapse of the Soviet Union,” he
told me. The Russian government budget had grown so dependent on energy
for its revenue, he said, that when the price of oil plummeted in the mid-
1980s, Russia’s lifeline to external capital dried up. “Gorbachev could no
longer fund the overseas wars and the Soviet Republics,” he said. “But this
argument was entirely missing in the German debate, especially on the left.”
Urban argued that Ostpolitik’s theory of change suffered from two basic
misconceptions: the belief that political change in eastern Europe could only
come from engaging with the elite in power, rather than from civilian
movements, and second, that “security must be the key to everything”.
y the turn of the century, the advocates of change through trade were in their
pomp. Chancellor Schröder, with growing confidence, promoted the idea of a
strategic partnership with Russia. He invited the new Russian president,
Vladimir Putin, to address the Bundestag in 2001, where he won over his
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audience by giving the speech in fluent German and declaring “the cold war
is over”.
This time, protests against the pipeline did not just come from the US, but
from the states that had recently emerged from Soviet rule, such as Poland
and Lithuania. Radosław Sikorski, then Poland’s defence minister,
notoriously compared the plan to the 1939 Molotov-Ribbentrop non-
aggression pact between Nazi Germany and the Soviet Union, which paved
the way for the invasion of Poland.
Schröder has since been singled out for his role in creating Germany’s
dependence on Russian energy, and getting very rich in the process. But the
distinguished former German diplomat Wolfgang Ischinger recently argued
that Schröder should not take the blame for giving the go-ahead to Nord
Stream 20 years ago: most German politicians, he told the New York Times in
April, did not question whether they were getting into an unhealthy
dependence on Russian energy. In the article, Schröder made the same case:
“It never occurred to anyone that this could become a problem. It was just a
way of procuring gas for Germans, for Germany’s heavy industry, and also for
the chemical industry, with fewer problems and disruptions.”
Moscow
Nord Stream
Latvia
Nord Stream 2
North Sea
Lithuania
Baltic
Denmark Sea
Belarus
Lubmin
Ukraine
Poland
Berlin
300 km
Germany
300 miles
Some German sanctions on Russia continued for many years, but the
advocates of change through trade gradually re-established their ground. It
seemed nothing Russia could do would shake their confidence. On 4
September 2015, at the Vladivostok economic forum, with Putin in
attendance, an agreement was signed for the construction of the Nord
Stream 2 gas pipeline on the Baltic seabed, which would vastly increase
Germany’s reliance on Russian natural gas. Gazprom would also take over
Germany’s gas storage business, thereby handing control of German energy
reserves to a foreign power.
The historian Sarotte said there is no clear evidence that business had
exerted greater influence in politics in Germany than in other countries.
Nevertheless, over the years, Russia showed an ability to suborn, and in
some cases corrupt, the German political class. The Polish foreign minister,
Zbigniew Rau, on a visit to Berlin in late May, called German Ostpolitik a
“fiasco”. German rhetoric around the political value of interdependence, he
said, crudely boiled down to gaining a competitive advantage through cheap
energy.
German Chancellor Angela Merkel and then Russian President Dmitry Medvedev (centre left and
right), opening a symbolic valve during an inaugural ceremony for the first of Nord Stream’s twin
gas pipeline in 2011. Photograph: John MacDougall/AFP/Getty Images
Much of Germany’s belief in trade with Russia was born of wishful thinking.
It led Steinmeier as foreign minister, for instance, to look constantly for signs
of reform, ignoring foreign office advice that he needed a plan B in case
Germany’s faith in Russia turned out to be ill-founded. In 2016, Steinmeier
gave a deeply sincere, almost elegiac speech at Yekaterinburg University
asking whether Germany and Russia were still capable of listening to one
another. He admitted the annexation of Crimea had been a low point, but
hoped dialogue was still possible, urging both sides not to turn their backs on
one another.
It was the speech of a man who sensed the tide was going out, and who
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feared his belief in dialogue no longer matched the spirit
of harsher times: “In political discussions, we sometimes hear opinions
expressed by people who are not interested in the slightest in understanding
others; people who have already made up their minds about the other side;
people who don’t even bother reading because they think they already know
the answer.” What he described as the “supposed antagonism” between the
west and Russia, he feared was becoming entrenched and ideologically
driven, running counter to the pursuit of diplomacy and peace.
Now, as Germany’s president and head of state, Steinmeier has been told by
Ukrainian officials that his record as the promoter of Russian interests in
Germany means he is not welcome in Kyiv at this time. It seems a shame.
There would be no need for him to fall to his knees – as Willy Brandt did in
Warsaw in 1970, apologising for his nation’s wartime crimes – but he could
give a sober reflection on what precisely went wrong with Germany’s eastern
policy for so long. For, one way or another, a reckoning is still needed.
This article was amended on 2 and 3 June 2022 to make clear that when
Egon Bahr was adviser to Willy Brandt in 1963, the latter was yet to become
chancellor; and that officials at the 1970 Essen meeting were representing the
Soviet Union rather than Russia.
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:
Luke Harding
Foreign correspondent
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