Germany axes pivotal Nord Stream II pipeline bringing Russian gas to Europe after Putin sends troops to Ukraine

• Germany axed the Nord Stream II pipeline deal after Russia moved forces into Ukraine.
• Putin ordered Russian forces into pro-Kremlin areas of eastern Ukraine on Monday.

Germany on Tuesday scrapped plans for the Nord Stream II pipeline after Russian President Vladimir Putin sent troops into Ukraine.

During an address on the Ukraine crisis Tuesday, German Chancellor Olaf Scholz said he decided to "reassess" the certification, a necessary approval for it to start moving gas from Russia to countries in Europe.

"In light of the most recent developments, we must reassess the situation in particular regarding Nord Stream II," he said. "The situation has fundamentally changed."

It was the first significant economic consequence for Russia after its escalation of the conflict in Ukraine. The US, EU, and UK also promised economic sanctions would be announced later Tuesday.

Reports from eastern Ukraine on Monday showed Russian tanks moving into the rebel-held areas of the Donetsk and Luhansk regions of Ukraine, which seemed to fulfill Putin's command for a "peacekeeping" mission there.

Scholz said Tuesday that Germany would find ways to meet its energy needs without the Nord Stream II.

The pipeline provides a route between Russian gas-production sites and mainland Europe. Earlier pipes went through Ukraine. Work was completed in September, though it could not begin piping gas without certification from Germany.

The pipeline, mostly owned by the Russian gas corporation Gazprom, cost 10 billion euros ($11.5 billion) and was meant transport 55 billion cubic meters of natural gas each year.

Ukraine's foreign minister, Dmytro Kuleba, praised Scholz in a tweet Tuesday, saying: "True leadership means tough decisions in difficult times."

The US said last month the pipeline would not open if Russia invaded Ukraine.

"We will work with Germany to ensure it does not move forward," Ned Price, a State Department spokesperson, said at the time.

The US has long been concerned about the project. Its officials worried that infrastructure between Russia and Europe would deepen countries' dependence on Russia for energy and make European nations less likely to challenge Russia.

During the Trump administration, the US sanctioned a number of Russian companies working on the pipeline. Those restraints were lifted in May, though US Secretary of State Anthony Blinken continued to call the project "a bad deal — for Germany, for Ukraine, and for our Central and Eastern European allies and partners."