Midstream

Germany and the U.S. reach agreement on Nord Strem 2

U.S. nord stream 2 Germany

Germany and the United States have reached an agreement upon the Nord Stream 2 pipeline; according to Reuters, Berlin agreed to respond to any Russian attempt to use energy as a weapon against Ukraine or any other central Europe countries.

Firstly, as we reported yesterday, the rumors of an agreement were all around; since May, president Joe Biden decided to waive the long-time sanctions of the U.S. government upon the pipeline. Biden defended his move by saying that, since the pipeline was almost entirely built; it would have been a bad move to impose sanctions; in terms of bilateral relationships.

Secondly, during last week, Angela Merkel, Germany’s Chancellor visited the U.S. During her visit, she discussed the pipeline with Joe Biden; however, they reached no agreement. The pipeline will transport gas from Russia to other European nations, through Germany. Possibly cutting off other nations that serve as bridge for Russian gas, and get substantial revenue out of it.

Thirdly, the negotiations on the pipeline finally ended and parties agreed. According to the joint statement. “The United States and Germany are united in their determination to hold Russia to account for its aggression; and also, its malign activities by imposing costs via sanctions and other tools.”

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Germany to use political levers to help Ukraine reach energy independence

Consequently, under the agreement “if Russia attempt to use energy as a weapon or commit further aggressive acts against Ukraine;” Germany will also take steps on its own and will impose sanctions and other measures to “to limit Russian export capabilities to Europe in the energy sector.

In addition, the statement says. “The design of this commitment aims to ensure that Russia will not misuse any pipeline; including Nord Stream 2, to achieve aggressive political ends by using energy as a weapon.” According to Reuters, the agreement will also extend the Russia-Ukraine gas transit agreement for 10 more years. Originally such agreement would have expired in 2024.

Additionally, a senior State Department official said, in condition of anonymity that. “Germany has committed to use all of its available leverage to negotiate an extension to the gas transit agreement.”

Finally, to ensure that, Germany will contribute at least $175 million to a new $1 billion “Green Fund for Ukraine”; aimed at improving the country’s energy independence. The agreement met criticism. Republican Senator Ted Cruz said that the agreement was a “generational geopolitical win for Putin and a catastrophe for the United States and our allies.”

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