In September 2022, sabotage struck the Nord Stream pipelines amid Europe’s energy crisis exacerbated by the Ukraine war. Despite its apparent end, renewed interest in Nord Stream 2 has surfaced, with figures like Richard Grenell suggesting a potential U.S.-Russian gas deal. Complications arise from EU sanctions and the need for German approval, while American investors, including Stephen Lynch, show interest in acquiring the pipeline. Recent court rulings hint at ongoing discussions, raising questions about its future role in the evolving geopolitical landscape.
Unraveling the Future of Nord Stream 2
In September 2022, a dramatic act of sabotage occurred when the Nord Stream 1 gas pipeline and one strand of its counterpart, Nord Stream 2, experienced explosions. Many analysts perceived this event as a pivotal moment in the contentious saga surrounding these pipelines. The Russian invasion of Ukraine highlighted Europe’s urgent need to reduce its reliance on inexpensive Russian gas, and the explosions in the Baltic Sea solidified that reality.
Renewed Interest and Controversial Discussions
Despite the apparent demise of Nord Stream 2, recent reports indicate that the project may not be entirely finished. Surprising support appears to be emerging from unexpected quarters. According to “Bild am Sonntag,” Richard Grenell, a close associate of former President Donald Trump, has made several trips to Switzerland for clandestine discussions. He allegedly explored possibilities for a Russian-American deal at the headquarters of the Nord Stream 2 operating company in Zug.
The proposed idea involves delivering Russian gas to Germany via the still-functional strand of the pipeline, with American operators acting as intermediaries. Grenell has denied these claims, urging caution in interpreting the reports, as some elements seem highly unlikely.
During his presidency, Trump staunchly opposed the pipeline project, accusing Germany of becoming too energy-dependent on Russia. In 2019, he even implemented sanctions against companies involved in the project. The prevailing view at that time suggested that Trump’s actions stemmed from geopolitical concerns regarding Russia, as well as the interests of American liquefied gas providers aiming to penetrate the European market.
The feasibility of an American-Russian gas agreement raises significant questions, particularly regarding the necessity of German government approval and the resistance from the EU. Existing American and European sanctions against Russia further complicate this idea. Nevertheless, the “Financial Times” also reports on attempts to breathe new life into Nord Stream 2.
According to the British publication, the negotiations involve Matthias Warnig, a German businessman and ally of Russian President Vladimir Putin. Warnig, who was previously the managing director of Nord Stream 2 AG until 2023, has deep ties to Gazprom, the Russian state-owned energy giant. The report cites anonymous sources from Washington and Brussels, suggesting that this new plan could grant the U.S. extraordinary influence over Europe’s energy landscape.
Given the substantial challenges, it remains uncertain whether this initiative is merely a fantastical notion or a strategic move to entice the Kremlin into negotiations. However, there is evident interest from American investors in the stalled pipeline.
Entrepreneur Stephen Lynch, with extensive experience in business dealings with Russia and notable support for Trump’s campaign, has expressed a desire to purchase Nord Stream 2. He views this as a unique chance to “seize control over European energy supply for the foreseeable fossil fuel future.” Due to existing sanction laws, Lynch must apply for a special permit in 2024 to initiate talks with the pipeline’s owners.
German foreign policy analyst Roderich Kiesewetter shared insights with “Tagesspiegel,” indicating he had heard of such initiatives from various sources and labeled them a misguided effort. He also criticized domestic advocates for lifting sanctions against Russia, asserting that reviving Nord Stream 2 could never contribute to a peace process.
These quiet efforts to revitalize the pipeline were underscored by a ruling from the Zug District Court on January 9, which allowed a moratorium extension for the financially troubled operating company. The court acknowledged that Nord Stream 2 AG claimed to be in active discussions with financial investors. However, it remains unclear whether Lynch is among them, as specific details in the ruling have been withheld.
Additionally, the court referenced the potential impact of a change in the U.S. government on the stock corporation’s situation. While this may appear to be hopeful speculation from the pipeline owners, Nord Stream 2 now stands as a significant variable in the new geopolitical landscape that Trump initiated with his pro-Russia approach.