On 8 October, Reuters reported, citing five informed sources, that representatives from the US and Russia – notably US Special Envoy Jared Kushner and Russian Presidential Adviser Kirill Dmitriev – had discussed the possibility of bringing an American investor on board Nord Stream. A White House official, however, told the agency that there had been no recent discussions specifically regarding this pipeline.
Briefly about the main points
- Reuters reported on possible contacts between the US and Russia regarding an investor for Nord Stream.
- The exact dates and details of the pipeline negotiations have not been disclosed.
- The White House told Reuters that there had been no recent discussions about Nord Stream.
- EU restrictions and Germany’s stance are complicating a possible restart.
What Reuters reported regarding the contacts
Pros. data Reuters, Kushner і Dmitriev Over the past few weeks, they have held meetings in Moscow and New York. The agency has not established to what extent Nord Stream was discussed at these specific meetings, but two of its sources said that the issue remains on the agenda.
The information does not indicate that an agreement has been reached or that an investor has been selected. A White House spokesperson told Reuters that any agreements would need to be discussed by Russia with the US International Development Finance Corporation and the US Treasury Department, and must be beneficial to American taxpayers and companies.
What obstacles stand in the way of resuming supplies?
The EU has imposed restrictions on transactions relating to Nord Stream 1 and Nord Stream 2, and has also approved a phased phase-out of Russian gas imports. Under these circumstances, a potential commercial agreement does not automatically pave the way for the resumption of gas supplies.
A spokesperson for the German Ministry of Economy and Energy told Reuters that the country had found alternatives to Russian gas. According to her, restoring the pipelines would require government approval, which Berlin is not seeking.
The US official also told Reuters that, given the current obstacles, an agreement is unlikely in the medium term. The agency cites this official as the source of its assessment regarding US sanctions.
The condition of the pipelines and the structure of Nord Stream AG
Nord Stream 1 ceased gas deliveries on 1 September 2022. On 26 September of the same year, the pipelines were damaged by explosions in The Baltic Sea. Nord Stream 2 has still not commenced commercial operations.
Until 2022, Russian gas accounted for around 55% of Germany’s imports, with Nord Stream 1 being one of the key routes. Gazprom holds 51% shares in Nord Stream AG, whilst two German shareholders hold a combined total of 31%. This ownership structure relates specifically to Nord Stream AG and does not describe the structure of Nord Stream 2 AG.
The information provided to Reuters does not include details on whether the damaged infrastructure is ready for repair, sale or the resumption of gas flow. Regulatory restrictions, Germany’s stance and the unknown technical condition of the pipelines remain key obstacles to any such project.
