U.S. and Germany End Their Energy Rift With Nord Stream 2 Accord

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(Bloomberg) — The U.S. and Germany have completed a deal approving completion of the Nord Stream 2 pipeline, effectively ending a longstanding rift between the allies over German gas purchases from Russia, according to two senior State Department officials.

Under the agreement, Germany agrees to take action if Russia tries to use energy as a weapon against Ukraine, a decision that may mark a concession from Chancellor Angela Merkel, who had previously balked at making independent moves against the Kremlin over the gas pipeline that will run from Russia to Germany.

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The U.S. and Germany would also seek to promote investments of as much as $1 billion in a so-called Green Fund to help Ukraine’s transition to cleaner sources of energy. Germany would commit to an initial $175 million investment in the fund. Germany would also appoint a special envoy — with $70 million in funding — to support bilateral energy projects with Ukraine.

The deal puts an end to a decade-long U.S.-German feud over the project, which critics have argued would give Moscow too much leverage over European national security. Biden’s administration initially suggested it would try to halt construction but later shifted its approach, saying doing so would be a long shot and only sour relations with the German government.

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