US President Joe Biden and German Chancellor Angela Merkel failed to resolve their dispute over Russia’s North Stream 2 natural gas pipeline on Thursday (July 15), but said they agreed not to allow Moscow to use energy as a threat to neighboring countries Weapons.
“A good friend can disagree,” Biden told reporters after two meetings with Merkel at the White House, adding that both leaders asked their teams to study practical measures they could take together if Russia’s actions constituted a threat.
Merkel said that if Russia violates its agreement to continue transporting natural gas supplies through Ukraine, Russia may face EU sanctions.
Biden said he expressed to Merkel his long-standing concerns about the $11 billion pipeline that will transport natural gas from the Arctic to Germany through the Baltic Sea, bypassing Ukraine and depriving it of valuable transit fees.
Washington is urging Germany to find ways to ensure that Russia cannot use 98% of the completed pipeline to harm Ukraine or other Eastern European Union members. The project is led by the Russian state-owned energy company Gazprom and its Western partners.
US and German officials have been working hard to finalize a solution to avoid restoring the currently exempted US sanctions, but it became clear this week that the Biden-Merkel meeting will not reach any agreement in time.
The Biden administration concluded in May that Nord Stream 2 AG, the company behind the project, and its CEO were involved in sanctions. But Biden gave up the sanctions to allow time to reach an agreement and continue to rebuild relations with Germany, which were severely damaged during the administration of former President Donald Trump.
The President is under tremendous pressure from American lawmakers to stop the waivers and impose sanctions. Republican Senator Ted Cruz said on Twitter that he will postpone the ambassador nominated by Biden until the sanctions are put in place.
Biden defended his decision to postpone the implementation of sanctions because the pipeline is about to be completed, but he said that he and Merkel are “fully consistent in our belief that Russia must not be allowed to use energy as a weapon to intimidate or threaten neighboring countries.”
Merkel told reporters that Germany and the United States, the largest European economies, have different views on the project. But she insisted that Ukraine must continue to be a transit country. If Russia does not respect Ukraine’s sovereign rights, Berlin will respond “positively”.
When asked to elaborate, Merkel said that if Russia cuts off gas transportation through Ukraine, the EU has “many tools” that can be used, including sanctions.
Biden said that the two leaders agreed to continue to support Ukraine’s sovereignty and territorial integrity.
They also agreed to cooperate to speed up the response to the climate crisis in emerging economies, including through investments in Central and Eastern Europe.
A joint statement pointed out investments aimed at supporting Ukraine’s energy transition, energy efficiency and energy security. This move may affect the final agreement, and it is expected that the threat of US sanctions against Beixi 2 will end before August.
