Bullied by Russia, Germany intensely negotiated with Canada a sanctions exemption pertaining to Nord Stream 1 gas turbines included in Canada’s sanctions regime that is governed by its Special Economic Measures (Russia) Regulations adopted in response to Russia’s all-out war against Ukraine. Nord Stream 1 is a gas pipeline from Russia to Germany, operated by a subsidiary of the Russian energy giant Gazprom, a company sanctioned by Canada.
To force this issue, Gazprom reduced the flow of natural gas from Russia to Germany through the Nord Stream 1 gas pipeline by 60 per cent. This shortage in energy supply was used to sow fear of a possible collapse of industries in Germany. The New York Times reported that when these gas cuts were announced by Gazprom, Germany’s Economy Minister Robert Habeck told the press on 15 June 2022 that this was a strategy to unsettle and drive up the price of gas.
Prior to these events, Reuters reported that in April 2022, Ukraine was urging Western allies to shift the shipments of natural gas from the Nord Stream 1 pipeline to Ukraine's pipeline. This would force Russia to pay more transit fees to Ukraine, which would help Ukraine defend its territorial integrity and shield EU countries from Russian aggression. It would also dissuade the Kremlin from damaging Ukraine's gas pipelines.