The United States (US) and Germany are close to reaching a bilateral agreement on Nord Stream 2 that would threaten action against Russia if it uses the gas pipeline to harm Ukraine or other Eastern European nations.
Under the agreement, Germany would take action against Russia if it commits aggression against Ukraine while also pushing the European Union to impose sanctions to limit Russia’s energy exports. Additionally, Bloomberg reported that the US and Germany would “seek to promote investments of almost $1 billion in a so-called Green Fund to help Ukraine’s transition to cleaner sources of energy,” with Germany making an initial investment of $175 million. Germany would also promote bilateral energy projects with Ukraine and appoint a special envoy for $70 million of funding. Moreover, Germany has committed to “use leverage to extend Ukraine’s gas transit agreement with Russia for as long as ten years after it expires in 2024,” the discussion for which will begin soon.
Furthermore, the agreement will delay the resumption of the US sanctions against Nord Stream 2 AG and its chief executive, which Biden waived in May to encourage discussion between both parties. However, Reuters mentioned that the Biden administration “reserves the right to use sanctions on a case-by-case basis, in line with the US law.”
Last week, US President Joe Biden met German Chancellor Angela Merkel at the White House, where both sides agreed to restrict Moscow from exploiting energy sources. President Biden said, “Chancellor Merkel and I are absolutely united in our conviction that Russia must not be allowed to use energy as a weapon to coerce or threaten its neighbours. We will be actively acting should Russia not respect this right of Ukraine that it has as a transit country.” Likewise, on Tuesday, US State Department spokesperson Ned Price said that the Germans had put forward practical proposals during the meeting. “We have been able to make progress on steps to achieve that shared goal, that shared goal being to ensure that Russia cannot weaponise energy,” he noted.
Meanwhile, some US officials are concerned about the gas pipeline and the national security threat to the US and its allies. In this regard, the State Department spokesperson said, “We continue to oppose the Nord Stream 2 pipeline. We view it as a Kremlin geopolitical project that is intended to expand Russia’s influence over Europe’s energy resources and to circumvent Ukraine.” The spokesperson, however, said he didn’t have the final details of the deal.
Nord Stream 2 is an $11 billion gas pipeline that is being built under the Baltic sea to carry gas from Russia to Germany. It has been a point of contention between Germany and the US, as the latter fears Europe’s increased dependence on Russian gas and Ukraine losing valuable transit fees. The agreement will resolve the long-standing dispute between the two sides and safeguard their interest in the region.
Despite pressure from the US Congress and Ukraine’s opposition, both sides are set to finalise the agreement’s details before Ukrainian President Volodymyr Zelenskiy likely visits the US this summer.
US, Germany Reach Agreement Over Nord Stream 2 to Mitigate Russian Threat to Ukraine
The United States and Germany are close to a deal on Nord Stream 2, which would mitigate the Russian threat to Ukraine and other nations in the region.
July 21, 2021
SOURCE: REUTERS