Friday, August 6, 2021

Nord Stream 2: USA and Germany reach agreement

After month long negotiations Germany and the US came to a compromise on the approach towards the contentious Nord Stream 2 pipeline. In particular the case of the sanctions against germany companies involved in the construction and the safeguard of Ukraine's interest as a gas transit country.

Read the reporting in german newspaper WELT:

The US and Germany have reached an agreement that allows the controversial Nord Stream 2 pipeline to be completed without the imposition of new US sanctions. State Secretary Victoria Nuland said this to the Foreign Affairs Committee of the US Congress on Wednesday.

Both governments plan to announce details of the agreement shortly. Washington and Berlin have agreed to impose sanctions on Russia and German companies if Moscow should use the pipeline as a political weapon, said the third highest US diplomat.

The federal government had previously expressed confidence that an agreement would soon be reached in the dispute with the USA over the Nord Stream 2 gas pipeline. The financial news agency Bloomberg and the "Wall Street Journal" had reported, citing sources in Berlin and Washington, that an agreement had been reached.
In the agreement, Germany promises Ukraine additional financial aid of a good 200 million euros. Berlin wants to fund bilateral energy projects in Ukraine with around 70 million euros, especially in the field of renewable energies and energy efficiency, as stated in the agreement published on Wednesday.

In addition, the USA and Germany want to set up a fund with a volume of at least one billion US dollars to finance investments in the energy transition and energy security in Ukraine. Germany will initially pay 175 million US dollars (almost 150 million euros) into the fund. The exact time frame for the disbursement of the committed funds was initially unclear. The federal government will also "work towards an increase in commitments in the coming budget years" for the fund, it said.
The agreement was preceded by a visit by Chancellor Angela Merkel (CDU) to Washington, where she also talked to US President Joe Biden about the pipeline. Both had made it clear last Thursday that they continue to have different views on Nord Stream 2. Biden warned Russia against using its energy resources as a “weapon” or leverage against its neighbors like Ukraine. At the same time, he indicated that punishing Germany could be counterproductive for broader US interests.

Merkel emphasized that Nord Stream 2 is an additional project and not an alternative to gas transit through Ukraine. “Our understanding was and is and will remain that Ukraine remains a transit country for natural gas.” Anything else would “cause very great tensions”. She assured that "we will act actively if Russia does not honor Ukraine's right to a transit country".
According to a government spokeswoman, Merkel phoned Russian President Vladimir Putin on Wednesday. On the one hand, the phone call was about the implementation of the Minsk agreements for a peaceful solution to the conflict in eastern Ukraine. "Energy issues such as gas transit through Ukraine and the Nord Stream 2 pipeline were also discussed," she added. In a message after the phone call, the Kremlin praised “the consistent commitment of the German side” in the implementation of the “exclusively economic project”.

Federal Foreign Minister Heiko Maas (SPD) announced on the Twitter online service that it was "a good thing that we and the USA have been able to pursue our common goals and convictions in Russia and energy policy again and have been able to agree constructive solutions on the subject of Nord Stream 2" .
The CDU foreign politician Norbert Röttgen welcomes the agreement on Nord Stream 2 as a move by the USA towards Germany. At the same time, he calls on both states to support Ukraine more intensively. “The agreement between the governments of the USA and Germany aims to prevent Nord Stream 2 from leading to a permanent dispute between the USA and Germany and thus causing additional damage. That is to be welcomed, ”said the chairman of the Foreign Affairs Committee of the Bundestag WELT. "The American administration under President Biden has thus taken a big step towards Germany."

According to Röttgen, Biden has made a great contribution to German-American relations in his previously short term in office. An ongoing dispute over Nord Stream 2 would especially please Vladimir Putin and would be neither in the German nor in the American interest. "The commitment to support Ukraine in building a climate-friendly energy industry also makes sense."
“As a matter of fact, the damage caused by Nord Stream 2 remains,” said Röttgen. “With the pipeline, Russia is no longer dependent on Ukraine as a transit country. Putin no longer has any reason to take Ukraine and its political stability into consideration. All the more, Germany and the USA are now obliged to support Ukraine even more intensively. "
“As a matter of fact, the damage caused by Nord Stream 2 remains,” said Röttgen. “With the pipeline, Russia is no longer dependent on Ukraine as a transit country. Putin no longer has any reason to take Ukraine and its political stability into consideration. All the more, Germany and the USA are now obliged to support Ukraine even more intensively. "


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