Thread by @KleineBrockhoff

Kudos to @SZ : the inside story of "Operation Megalomania" - how the Governor of the small state of Mecklenburg-Western Pomerania tried to rescue and finish #NordStream2 when🇺🇸threatened secondary sanctions. The history of a colossal misjudgement, a🧵 1/

sueddeutsche.de/projekte/artik…

Multiple participants very interviewed, many documents reviewed, but there is still no clear answer how all of this could have happened. @SZ offers two theories: did the state government just "brazenly act on economic self interest?" Or did it "act on behalf of the Kremlin?" /2

There are more questions: why is this a regional, not a national scandal? Why is the ambition to investigate limited? Why no criminal investigation? Why did the federal gov. fail to step in even though cabinet members were skeptical? Why is the governor's career unharmed? /3

To recap: When🇺🇸threatened secondary sanctions, Gov Schwesig decided to circumvent sanctions by creating a foundation, funded by the state (Euro 200 k) and NordStream AG (Euro 20m). Its task was to finish the pipeline while avoiding sanctions when working as a foundation. /4

As a cover up, the foundation supported environmental projects. Its name was "Climate and Environmental Foundation". It clearly violated the spirit of the law on foundations. They enjoy tax privileges because they engage in projects to advance the public good. /5

NordStream AG - and thus Putin's🇷🇺 - were heavily involved in setting up the legal structure and in preparing answers to potentially critical questions. /6

@NordStream2 AG lawyers even offered the state government language to respond to critical questions. Example: "Has @NordStream2 AG bought the state for its own purposes?" /7

Proposed answer: "No. @NordStream2 AG has engaged in multiple environmental projects in the whole Baltic Sea region. This commitment continues here." /8

This story is far from over. Too much smoke for there not to be fire. /9

There are many lessons to draw from this debacle: not least about the power of Russophilia and, at the same time, Anti-Americanism in🇩🇪. It is also a cautionary tale about the unindented consequences of secondary sanctions on allies. /10

NS2 supporters sprang into action to circumvent potential sanctions, even with dubious means. NS2 opponents fell silent because they believed,🇺🇸ought not to use coercive means to influence an allies' behaviour. ("We would like to commit our own mistakes"). Sovereignty matters /11

And it may not be a coincidence that the use of "environmentalism" to hide other motives continues. Chancellor Scholz plans an LNG terminal just miles from where NS2 ended onshore. Gov. Schwesig supported the former and opposes the latter. Why? /12

She opposes the LNG terminal (as does much of the local population) on environmental grounds while she had no environmental concerns about a pipeline gas port in pretty much the same location. Go figure. /13

Well, maybe there is an explanation: the pipeline was supposed to bring 🇷🇺gas, in the LNG port a solid percentage of the gas will come from🇺🇸which will be liquified there. But likely this is just an unjustified insinuation.... END