US and Germany bridging positions on Nord Stream: Open door for Schmidt's appointment?

(Patrai) - The United States is ready to enter into negotiations with Germany and soften its opposition to the construction of the Nord Stream 2 gas pipeline, writes the German newspaper Handesblatt, citing sources close to the administration of the new US President Joe Biden. The bridging of US and German positions on this issue could also resolve the issue of appointing a new High Representative in BiH, Patria learns.

Germany has nominated Christian Schmidt as High Representative, a diplomat and politician with good ties to Russia. However, if US-German relations truly soften regarding Nord Stream 2, it could open the door for the appointment of a new High Representative. 

-    Washington has been a fervent opponent of Nord Stream 2, from which Germany expects economic benefits. However, the new US administration has hinted that it might be willing to discuss lifting its sanctions, Handelsblatt reported, citing a US official involved in the talks. The report comes after US Press Secretary Jen Psaki stated in late January that the Biden administration would review the sanctions imposed by her predecessor, according to the investigative website "IntelliNews".

Work on the construction of the new pipeline carrying gas from Russia was halted in December 2019, after the US imposed the first sanctions. Russia responded by deploying its own pipe-laying vessels, which began work in German waters late last year.

Washington was expected to expand its sanctions regime in the near future, "IntelliNews" states, following the adoption of the law by both houses of the US Congress. Less than 5% of the pipeline remained to be completed, and German support for the project has not wavered, despite increased US pressure and international outrage over Moscow's treatment of opposition leader Alexei Navalny and his supporters. 

-    Although former US President Donald Trump avoided criticizing Russia, he expressed strong opposition to Nord Stream 2. Instead of citing political considerations, Trump did not hide the fact that his main concern was the competition that the Russian pipeline represented to US LNG. His successor, Joe Biden, has also said that Nord Stream 2 is a "bad idea" for Europe. However, Biden is likely to prioritize improving ties with US allies over protecting the country's share of the global gas market, given his green agenda – they stated. 

Before easing sanctions, the United States wants certain things in return, according to Handelsblatt. It is reportedly seeking guarantees that Russian gas transit through Ukraine will be maintained and that the US has a mechanism to shut down Nord Stream 2 if Ukrainian supply falters.