Exclusive-U.S., Germany to announce deal on Nord Stream 2 pipeline in coming days -sources
Reuters
Published Jul 19, 2021 07:36PM ET
By Andrea Shalal
WASHINGTON (Reuters) -The United States and Germany are expected to announce in coming days a deal resolving their long-standing dispute over Russia's $11 billion Nord Stream 2 natural gas pipeline, sources familiar with the matter said on Monday.
President Joe Biden and German Chancellor Angela Merkel failed to settle their differences over the undersea pipeline when they met last week, but agreed Moscow must not be allowed to use energy as a weapon against its neighbors.
A deal is now in sight after discussions among U.S. and German officials about U.S. concerns that the pipeline, which is 98% complete, will increase Europe's dependence on Russian gas, and could rob Ukraine of the transit fees it now collects on gas pumped through an existing pipeline.
An agreement would avert the resumption of currently waived U.S. sanctions against Nord Stream 2 AG, the company behind the pipeline, and its chief executive.
Details were not immediately available, but the sources said the deal would include commitments by both sides to ensure increased investment in Ukraine's energy sector to offset any negative fallout from the new pipeline, which will bring gas from the Arctic to Germany under the Baltic Sea.
"It's looking good," said one of the sources, who spoke on condition of anonymity because the talks are still ongoing. "We expect those conversations to reach resolution in coming days."
A second source said the two sides were nearing an agreement that would assuage concerns raised by U.S. lawmakers, as well as those of Ukraine.
Derek Chollet, a senior adviser to Secretary of State Antony Blinken, will meet with senior Ukrainian government officials in Kyiv on Tuesday and Wednesday to reinforce the strategic value of U.S.-Ukrainian ties, the State Department said on Monday.
One of the sources said the United States was eager to ensure that Ukraine supported the expected agreement with Germany.
The Biden administration concluded in May that Nord Stream 2 AG and its CEO engaged in sanctionable behavior. But Biden waived the sanctions to allow time to work out a deal and keep rebuilding ties with Germany that were badly frayed during former President Donald Trump's administration.
Get The News You Want
In addition to assurances by Germany about its willingness to "reverse flow" gas to Ukraine if Russia ever cuts off supplies to Eastern Europe, the sources said the agreement would include a pledge by both countries to invest in Ukraine's energy transformation, energy efficiency and energy security.
It was not immediately clear whether both countries would announce significant government investments, or whether they would seek to leverage private investments in Ukraine.
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.