FX.co ★ Germany seeks deal with US in order to complete Nord Stream 2

Germany continues to defend its energy independence, trying to dissuade the United States from imposing sanctions against the Nord Stream 2 pipeline. Another strong argument in this dispute between the allies can be financial assistance of up to €1 billion and additional effective control tools.

German and EU officials are discussing a deal that could convince the US to scrap sanctions on the project. In exchange for dropping Nord Stream 2 sanctions, Berlin offers Washington €1 billion and a clear regulatory mechanism that could limit Russia’s ability to manipulate the energy market.

Russian gas supply through Nord Stream 2 can be stopped in case Russia breaches international law or human rights. Berlin’s strategy includes a package of measures that would benefit the US and Ukraine. In addition, Germany promises to spend €1 billion to build terminals in order to boost imports of American liquefied natural gas.

According to the sources involved in the negotiations, this is the most likely and pragmatic scenario of the deal, if the parties are able to reach an agreement as soon as possible. Otherwise, Germany may end its political support for the project in the near future. The upcoming Bundestag election may lead to an increased number of cabinet members from the Green Party, which will threaten the construction of the gas pipeline.