Schroeder's Russian Pipeline Job Sparks Controversy in Germany

Strategic Insights -

Former German Chancellor Gerhard Schroeder has accepted a top job on a Russian-German gas pipeline project that he helped set up in his final weeks in office, sparking accusations of "disgusting" sleaze. The Bundesrat, Germany's upper house of parliament, held a special session to debate the issue, with European Union Commission Vice President Siim Kallas calling it a "compromise for Germany as a state." Analysts and politicians from all parties have criticized Schroeder's decision, citing his close friendship with Russian President Vladimir Putin and the $6 billion project's potential impact on neighboring countries.

Key Takeaways:

  • Schroeder's appointment as supervisory board chairman of the North European Gas Pipeline Co. has drawn widespread criticism, with many accusing him of favoritism and conflict of interest.
  • The joint venture between Gazprom, E.ON, and BASF will pump Siberian gas to Germany through a pipeline in the Baltic Sea, bypassing Poland and the Baltic states.
  • The project has caused a diplomatic row, with neighboring countries standing to lose gas transit revenues.
  • Schroeder has dismissed allegations that he could be paid up to $1.2 million a year for the position, stating pay had not been discussed.
  • Some politicians have called for a code of conduct for top government officials who leave office, while others have defended Schroeder's decision, citing the potential benefits of having a prominent German in charge of a strategically important project.
  • Schroeder has received a state pension of $9,200 a month and stands to receive substantial fees from Swiss publishing group Ringier as a consultant.

Statistics:

  • $6 billion: The estimated cost of the North European Gas Pipeline Co. project.
  • $9,200: Schroeder's monthly state pension.
  • $239,000 to $1.2 million: The reported salary range of Schroeder's new position.
  • 2 weeks: The time elapsed between the announcement of the joint venture and Germany's September election.
  • 2 months: The time elapsed between Schroeder's departure from high politics and his being approached for the job.
  • $9.2 billion: Germany's annual gas imports in 2020 (Source: German Energy Agency).

Sources:

  • "Bundestag holds special session over Schroeder's Russian job." THE WASHINGTON TIMES BERLIN.
  • Gazprom press release announcing Schroeder's appointment on October 12, 2007 (no date).
  • Bild newspaper article featuring an interview with Gazprom Chief Executive Alexei Miller (no date).
  • European Union Commission statement by Siim Kallas on October 11, 2007 (no date).