German Chancellor Angela Merkel and US President Joe Biden on Thursday reached an agreement on the Nord Stream 2 pipeline that will carry gas from Russia to Europe, bypassing Ukraine, on July 21. The deal should allow the pipeline to be completed without further US sanctions.
The $11 billion project may now go ahead although Germany and the US have not yet resolved all of the issues that have divided them on this subject for nearly a decade.
The agreement reached between Washington and Berlin, which was announced Wednesday, aims to invest more than 200 million euros in energy security in Ukraine as well as sustainable energy across Europe, CNBC reported.
The Biden administration concluded in May that Nord Stream 2 AG and its CEO engaged in sanctionable behavior. But Biden waived the sanctions to allow time to work out a deal and keep rebuilding ties with Germany that were badly frayed during former President Donald Trump’s administration.