Full Breakdown
US-Russia Talks Target U.S. Investment in Nord Stream Pipelines Amid Sanctions
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Core Negotiations on Nord Stream Ownership
Top officials from Russia and the United States have been meeting to explore a plan that would allow a U.S. investor, potentially through the U.S. International Development Finance Corporation (DFC), to acquire a stake in the Nord Stream gas pipelines that once supplied more than half of Germany’s gas before Russia’s invasion of Ukraine in February 2022. The discussions have involved Kirill Dmitriev, a close adviser to President Vladimir Putin, and Jared Kushner, the former U.S. special envoy and son-in-law of former President Donald Trump. The two have met in Moscow and New York in recent weeks, and a White House official said any deal would have to be negotiated with the DFC and the Treasury and must benefit U.S. taxpayers and companies. The same official added that there had been “no Nord Stream discussions recently,” indicating uncertainty about the depth of the talks.
Background and Ownership Structure
The Nord Stream pipelines were mothballed after Moscow throttled supplies and were later damaged in underwater explosions in September 2022. The United States and the European Union have sanctioned the pipelines, making a restart illegal under current rules. The pipeline operator is 51 % owned by Russian state energy giant Gazprom, 31 % split between two German entities, with the remaining shares held by French and Dutch firms. Germany’s coalition government opposes any reopening, while the far-right Alternative for Germany (AfD) party has expressed support for resuming Russian gas sales.
German and European Opposition
“This threatens to be a dirty deal that will cost Europe dearly,” — Michael Kellner. Poland and the Baltic states have also voiced firm opposition, fearing increased vulnerability to Russian influence. German shareholders aim to retain their stakes to preserve national influence should Gazprom consider selling.
Outlook
Given the sanctions framework, the need for congressional approval of any waiver, and divergent political stances within Europe, a U.S.-backed investment in Nord Stream faces significant legal and diplomatic hurdles in the medium term.