VZCZCXRO0843
OO RUEHIK
DE RUEHSM #0694/01 3100638
ZNR UUUUU ZZH
O 060638Z NOV 09
FM AMEMBASSY STOCKHOLM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4853
RHEBAAA/DEPT OF ENERGY WASHDC IMMEDIATE
RUCPDOC/DEPT OF COMMERCE WASHDC IMMEDIATE
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE IMMEDIATE

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