© Reuters. File photo: On February 26, 2020, the logo of the Nord Stream 2 natural gas pipeline project can be seen on the pipeline of the Chelyabinsk Tube Rolling Plant in Chelyabinsk, Russia. REUTERS/Maxim Shemetov/File Photo
WASHINGTON (Reuters)-People familiar with the matter said on Monday that the United States and Germany are expected to announce an agreement in the coming days to resolve the long-term dispute between the two sides over Russia’s $11 billion Beixi 2 pipeline.
President Biden and German Chancellor Merkel failed to resolve their differences over the submarine pipeline when they met last week, but agreed that Moscow must not use energy as a weapon against neighboring countries.
After US and German officials discussed that the US fears that 98% of the completed pipeline will increase Europe’s dependence on Russian gas and may deprive Ukraine of the transit fees it now charges for natural gas pumped through pipelines, the agreement is about to be reached. Existing pipeline.
An agreement will prevent the United States from resuming current sanctions on North Stream 2 AG, the company behind the pipeline, and its CEO.
Details are not immediately available, but sources say the agreement will include a commitment by both parties to ensure increased investment in Ukraine’s energy sector to offset any negative effects of the new pipeline, which will transport natural gas from the Arctic to Germany under the Baltic Sea.
“It looks good,” said one of the sources, who requested anonymity because negotiations are still ongoing. “We expect these dialogues to reach a resolution within the next few days.”
Another source said that the two sides are about to reach an agreement to alleviate concerns raised by American and Ukrainian lawmakers.
The U.S. State Department said on Monday that Derek Chollet, a senior adviser to Secretary of State Antony Blinken, will meet with senior Ukrainian government officials in Kiev on Tuesday and Wednesday to strengthen the strategic value of U.S.-Ukraine relations.
One of the sources stated that the United States is eager to ensure that Ukraine supports the expected agreement with Germany.
The Biden administration concluded in May that Nord Stream 2 AG and its CEO were involved in sanctions. But Biden gave up the sanctions to allow time to reach an agreement and continue to rebuild relations with Germany, which were severely damaged during the administration of former President Donald Trump.
The source said that in addition to Germany’s guarantee that if Russia cuts off supplies to Eastern Europe, it is willing to “reverse” natural gas to Ukraine, the agreement will also include the two countries’ commitment to invest in Ukraine’s energy transition, energy efficiency and energy. Safety.
It is not clear whether the two countries will announce large-scale government investment or whether they will seek to capitalize on private investment in Ukraine.
Converged Media Fusion Media or anyone related to Fusion Media shall not be liable for any loss or damage caused by reliance on the data, quotations, charts, and buy/sell signals contained in this website. Please fully understand the risks and costs associated with financial market transactions. This is one of the most risky forms of investment.