Confidential talks hint at potential Nord Stream 2 revival

The German government previously regarded the Nord Stream 2 pipeline—a grand German-Russian venture worth billions of euros—as a guarantee of low-cost energy. "Its economic importance was so significant that Berlin even withstood pressure from the USA. The former US ambassador to Germany, Richard Grenell, was incensed and warned Germany and the firms involved of severe sanctions," "Bild" recollected on Monday.

Nord Stream 2 was brought to a halt by the Russian invasion of Ukraine and has not yet been made operational. One of the two pipelines was even damaged following an act of sabotage in September 2022. An internal report, however, concluded that repairs are feasible, although they would take a few months.

Grenell is now expected to be Trump's envoy in a mission that could have significant repercussions for Germany, as "Bild" notes, recalling that after winning the presidential election in November, Donald Trump announced that "Ric will work in some of the hottest spots around the World."

According to "Bild," the "special envoy has made unofficial visits to Switzerland several times to discuss the agreement. Steinhausen in the canton of Zug is the base of the company maintaining the Baltic Sea Nord Stream 2 pipeline. Behind this enterprise stands Putin’s gas behemoth, Gazprom."

What form will the gas agreement between Trump and Putin take? The basic idea is for the two powers to enter a supply agreement, under which the USA would act as an intermediary in channeling Russian gas through the Nord Stream 2 pipelines to Mecklenburg-Vorpommern. This way, the Americans could theoretically control the German gas supply while also benefiting financially," states "Bild."

The US government would not be directly involved. American financial investors are interested in participating in the gas transaction. According to documents from the relevant Swiss bankruptcy court, several American bidders have already shown interest. The companies that manage Nord Stream 1 and 2 are bankrupt because no gas is presently flowing through the pipelines. One interested party is American businessman Stephen Lynch, as reported by "Bild."

The businessman, who is well-connected in both Moscow and Washington, announced a few weeks ago his intention to become involved in Nord Stream 2. He emphasized the benefits of the USA having control over the pipeline to Germany.

The appropriate cantonal court in Zug has recently granted the parties involved additional time. "At the beginning of January, the judges extended the deadline for the insolvent company Nord Stream 2 AG until 9 May to avert the forced sale of the pipeline infrastructure. The court cited the complex geopolitical situation, the inauguration of Donald Trump, and the interests of financial investors as reasons for the decision," notes the portal.

"Bild" indicates that "the German government has not been involved in the confidential discussions. Government circles claim they have no knowledge of Grenell's meetings in Switzerland. Grenell denies any involvement."

It remains uncertain whether the deal will materialise. On one side, Nord Stream 2 is awaiting final approval from German authorities, and on the other, there is a crisis in the Oval Office. On Friday, Trump and his Vice President, J.D. Vance, engaged in a public disagreement with Ukrainian President Volodymyr Zelensky. As a result, hopes for a swift ceasefire have diminished, along with the prospects for the gas deal," writes "Bild."

According to the British newspaper "Financial Times," Matthias Warnig, a former Stasi officer in the GDR and a friend of Putin who led Nord Stream 2 AG until 2023, is the visionary behind the efforts to resume the pipeline's operation. Important figures within the US authorities are aware of this initiative and view it as part of mending relations with Moscow.