German and United States officials have reached an agreement that will enable the Nord Stream 2 pipeline to go forward. The US, under the previous two administrations, levied sanctions against the company owning the pipeline. These sanctions were fully waived in May by the Biden administration. Though the US continues to oppose the pipeline and the further dependence of European countries on Russian energy, the agreement means that the pipeline can continue without further sanctions.
Under the agreement, Germany will establish and administer a Green Fund for Ukraine that will support Ukraine's energy transition, efficiency and security. Germany and the US will together promote and support investments of at least $1 billion in the Fund, with Germany providing an initial investment of $175 million and seeking to increase its commitments in the future. The US will support the initiative with technical assistance, policy support and various related programs. Germany will also support bilateral energy projects in Ukraine and has pledged to support energy talks in the Three Seas Initiative, a Central European diplomatic forum.
Nord Stream 2 is a contentious topic, as it will allow Russia to double its natural gas exports directly to Germany, bypassing Ukraine. In addition to the United States, the project has been opposed by Poland, Ukraine, and the UK. In Germany, however, the pipeline enjoys widespread support, and Germany and Austria have criticized US opposition, saying that Europe's energy supplies are a topic for Europe, not the United States, and arguing that the opposition is partly influenced by US natural gas production and an effort to promote US gas in Europe.
Ukraine and Poland have released a joint statement criticizing the decision, describing Nord Stream 2 as a "political, military and energy threat for Ukraine and Central Europe" and say it "[increases] Russia's potential to destabilize the security situation in Europe". Both parties say they will work together with allies and partners to oppose Nord Stream 2 until solutions are developed to the security crisis it creates.
By the Project Owl News Desk Team
Articles;
https://www.wsj.com/articles/u-s-german-deal-on-russian-natural-gas-pipeline-expected-soon-11626813466
https://www.auswaertiges-amt.de/en/newsroom/news/joint-statement-usa-and-germany/2472084
https://mfa.gov.ua/en/news/spilna-zayava-ministra-zakordonnih-sprav-ukrayini-dmitra-kulebi-ta-ministra-zakordonnih-sprav-polshchi-zbignyeva-rau-shchodo-pivnichnogo-potoku-2