U.S., Germany Reach Deal On Nord Stream Pipeline As Congress Voices Opposition

U.S., Germany Reach Deal On Nord Stream Pipeline As Congress Voices Opposition

According to RFE/RL, The United States and Germany say they have reached an agreement to allow the completion of Nord Stream 2, the controversial Russian gas pipeline to Europe that opponents say undermines the energy security of Ukraine and other Eastern and Central European countries.

The Biden administration is expected to face strong pushback over the deal from Congress, which has twice passed sanctions legislation to stop the project with overwhelming bipartisan support.

In a joint statement on July 21, the United States and Germany said they have agreed on a package of measures, including the possible implementation of sanctions against Russia, that will aim to soften any impact on Ukraine's budget and national security from the completion of the Kremlin-backed project.

Nord Stream 2, which consists of two parallel pipelines stretching 1,230 kilometers each along the Baltic Sea, is designed to reroute Russian Arctic natural gas bound for Germany around Ukraine and Poland, potentially depriving Kyiv of $2 billion in annual transit fees.

Critics also say the project undermines Ukraine's national security, arguing that Russia could act more aggressively toward its smaller neighbor if it does not rely on the country for gas transit.

Russia in 2014 seized Ukraine's Crimean Peninsula and instigated fighting between Ukrainian armed forces and Moscow-backed separatists in the east that has killed more than 13,200 people.

Early this year, Russia amassed more than 100,000 troops near its border with Ukraine in what U.S. officials said was an act of intimidation.

"Should Russia attempt to use energy as a weapon or commit further aggressive acts against Ukraine, Germany will take action at the national level and press for effective measures at the European level, including sanctions, to limit Russian export capabilities to Europe in the energy sector, including gas, and/or in other economically relevant sectors," the statement said.

Germany will appoint a special envoy to negotiate a 10-year extension of Russia's current transit agreement with Ukraine, which expires at the end of 2024, the statement said.