Biden Administration Not Willing to Compromise Its Relationship With Germany Over Nord Stream 2

President that doesn't have the permanent regime working against him permitted to make the correct tactical move

The Biden administration will waive sanctions on the corporate entity and CEO overseeing the construction of Russia’s Nord Stream 2 pipeline into Germany, according to two sources briefed on the decision.

Why it matters: The decision indicates the Biden administration is not willing to compromise its relationship with Germany over this pipeline, and it underscores the difficulties President Biden faces in matching actions to rhetoric on a tougher approach to Russia.

Driving the news: The State Department will imminently send its mandatory 90-day report to Congress listing entities involved in Nord Stream 2 that deserve sanctions. Sources familiar with the drafting of the report tell Axios the State Department plans to call for sanctions against a handful of Russian ships.

  • The State Department will also acknowledge that the corporate entity in charge of the project (Nord Stream 2 AG) and its CEO (Putin crony and former East German intelligence officer Matthias Warnig) are engaged in sanctionable activities.
  • However, the State Department will waive the applications of those sanctions, citing U.S. national interests.
  • This planned move seems at odds with Secretary of State Antony Blinken’s statement, made during his confirmation hearing: “I am determined to do whatever we can to prevent that completion” of Nord Stream 2.

Between the lines: This planned move also sets up a bizarre situation in which the Biden administration will be sanctioning ships involved in the building of Nord Stream 2 but refusing to sanction the actual company in charge of the project.

  • Sources close to the situation say that top Biden officials have determined that the only way to potentially stop the project — which is 95% complete — is to sanction the German end users of the gas.
  • And the Biden administration is not willing to rupture its relationship with Germany over Nord Stream 2.

The big picture: As Axios has previously reported, the completion of Nord Stream 2 would be a huge geopolitical win for Putin and give him substantial new leverage in Europe.

  • Russian gas currently has to pass through Ukraine on its way to Europe. Bypassing Ukraine with a direct pipeline to Germany is an opportunity for Russia to advance its goal of isolating its former client state, now a fledgling democracy, from Western Europe.
  • Russia has a long track record of cutting critical supplies to its neighbors during disputes, including cutting off gas to Ukraine.
  • The pipeline could be finished by the summer without a major intervention to stop it.

A State Department spokesperson told Axios the Biden administration had made clear that companies participating in Nord Stream 2 could face sanctions and would “continue to underscore U.S. strong, bipartisan opposition to this Russian malign influence project.”

  • “The Biden administration has been clear that the Nord Stream 2 pipeline is a Russian geopolitical project that threatens European energy security and that of Ukraine and eastern flank NATO allies and partners,” the spokesperson said.
  • The State Department spokesperson would not confirm the waivers or any details about the imminent report.

Administration sources contend any waivers applied to sanctions could be removed at any time.

  • They also argue the act of sanctioning and then waiving an entity establishes leverage over it, given the company would know that at any moment, the U.S. could reinstate the sanction.
  • They also add that the Biden administration’s goal remains to see that the pipeline doesn’t go into use.

Source: Axios

  1. Ronnie says

    Well well…..warm homes, hot food and the lights on v’s LPG super profits for Wall St….who would of guested.
    Nord Stream3 is already compete on the drawing boards. Ready to roll. WHY ?

    Because Germany knows full well, Russia is going to flatten Nazi Ukraine. Making Gaza look like small potatoes. [The transit gas is cut off from Russia]

    I predict 200 cruise missiles on the opening salvo. Then it all turns to shit as a mass air assault rolls over every Nazi target that is on Russian todo lists.
    Not one Russian soldier crosses the boarder…they don’t need it, want it, nor will they be financially responsible of it.
    Everyone in the Donbas with a Russian passport quietly loads up the car for a new life.

    Meanwhile Nord Stream1,2,3 keeps Germany, France and the rest sad sacks cooking in a warm kitchens with the TV and lights on.
    All politics is local.

    Meanwhile….America has “diaper Joe” in the WOKE SHOW and the US dollar spiralling out of control.
    Who killed the good olde days ?

    1. joey_n says

      I actually recall at one point someone saying that NordStream 2 would be the last Russo-European joint project for some long period of time (decades, I think it was, if not forever). If plans for a NordStream 3 are being drawn, then I would like to know where and when it has been discussed. Thanks in advance.

      1. Ronnie says

        Was openly discussed on the web. Try zerohedge. I will try to get the article.
        If you check, Germany, France and others are actually buying more Russian gas than last year. Germany is shutting down Nuke power and their minister said they need most gas and US LPG cannot supply enough anyway at any price.

        So it is Russian Gas and the Baltic Sea bed is the best way of doing it without paying zillions to third parties. Or have to put up with their shit.

        I never believe what comes out of any garden variety politicians mouth or arse. Just sayin.
        Europe is frightened of the USA for very good reasons. So they say one thing and smile while clutching flowers from Putin….. Sly dog (or bear.)

  2. yuri says

    senile hologram cancels US pipeline and then hackers from Topeka produce gas shortage in medieval society—hippie liberals advocate for living in teepees at cocktail parties in LA mansions, defund police and BLM ghettos secede from amerika—
    LGBT military erects statue of feces in San Francisco…..wokestan requests to become colony of Zimbabwe

  3. Bert33 says

    Natural gas=poo gas. Lots of poo in Europe.

Leave A Reply

Your email address will not be published.