A potential revival of cooperation between the United States and Russia in the energy sector is currently being discussed alongside a peace agreement concerning Ukraine, with new details emerging steadily. Last week, Russian President Vladimir Putin effectively confirmed that joint projects could include the restart of the Nord Stream 2 gas pipeline. “Yes, indeed, if the US and Russia reach an agreement on cooperation in the energy sector, then the pipeline for Europe can be ensured, and this will benefit Europe as they will receive cheap Russian gas,” stated Putin. Moreover, discussions about resuming oil supplies from Russia to Germany via the Druzhba pipeline have also surfaced, according to reports from Correctiv and Important Stories. German authorities are participating in these negotiations.
In 2022, Europe set an ambitious target to completely phase out Russian hydrocarbons within five years. However, this month, the European Commission was expected to present a detailed plan on how to achieve this. So why is the exact opposite being discussed now? Will Nord Stream 2 indeed get reactivated? As previously reported by DW, the possibility of restarting the Nord Stream 2 pipeline has been under discussion since the end of last year. American investors have also shown interest in the assets of the Swiss company Nord Stream 2, the operator of the pipeline. One prominent investor, Stephen Lynch, founder of the Monte Valle investment company and a backer of Donald Trump, has confirmed his interest. If the pipeline restarts, it may be led by Matthias Warnig, the former head of Nord Stream 2, who is often referred to in the media as “a friend of Vladimir Putin.”
The activity of the Russian company Pipe Coatings and Technologies, which participated in the construction of Nord Stream 2, adds to the indications that preparations for this project are underway. A source from the publication Important Stories, close to Gazprom's leadership, revealed that the company is gearing up to work on a major order. The idea is reportedly that American investors would act as intermediaries, purchasing gas from Gazprom and then reselling it to European consumers, thereby allowing the EU not to restore direct relations with Russia. Recent comments by Vladimir Putin have supported such a possibility, and details may emerge soon.
As for Nord Stream 2, the bankruptcy proceedings are ongoing, and the company’s assets were supposed to be put up for sale in January, but that has been postponed for several months. Meanwhile, the fate of the Druzhba pipeline, which has run Russian crude to the PCK refinery in Schwedt, Germany, since its inception, is being discussed in tandem. The refinery still belongs to Russia but has been under temporary German management since 2022. Currently, it receives crude from ports in Rostock and Gdansk through reserve pipelines and also via the Druzhba pipeline, as well as crucial transit from Kazakhstan through Russia.
Previously, companies from Qatar and Kazakhstan had been named among the potential buyers of the Schwedt refinery. However, according to Correctiv and Important Stories, as in the case of Nord Stream 2, American investors may also be in the picture, intending to act as intermediaries in the supply of Russian oil to Europe. One negotiator commented on the proposed deal, saying, “The Russians and Americans benefit: the Russians sell raw materials, the Americans supply them to Europeans, while Europe pays for everything.”
Why are the US and Russia considering energy cooperation? Following his March 18 conversation with Vladimir Putin, US President Donald Trump reiterated his goal of preventing a stronger alliance between China and Russia, which he perceives as “unnatural.” The proposal for energy cooperation could be seen as an attempt to draw Russia to the US side. According to Bloomberg sources, in addition to restarting Nord Stream 2 and resuming oil supplies through Druzhba, other initiatives are on the table, not just in Europe but also in Asia.
European Union officials assert that renewing energy cooperation with Russia is out of the question, but there is no consensus on this within the bloc. Some countries, particularly Hungary and Slovakia, have openly called for renewed purchases of Russian oil and gas. Regardless, the publication of the EU's roadmap for phasing out Russian hydrocarbons has been cancelled. Supporters of restoring energy relations with Russia exist in other EU countries as well, though their voices are currently less prominent. In Germany, both far-right and far-left parties are actively advocating for this approach, particularly strong in eastern states. However, even other political factions are finding common ground on the issue.
“If we can achieve peace and ensure that Europe is not threatened by Russia in the long term, we should be open to discussing future supplies of Russian gas,” stated Sven Schulze, Minister of Economy for Saxony-Anhalt and a member of the CDU, in an interview with Bloomberg. He expressed that completely excluding such potential was a “mistake.”
