Key facts
- US and Russian officials, including Jared Kushner and Kirill Dmitriev, have discussed US investor involvement in Nord Stream pipelines.
- The discussions aim to enable US investors to profit from energy flows to Europe after the war.
- A White House official denied recent Nord Stream discussions and stated any deals must benefit US taxpayers and companies.
- Germany's economy and energy ministry stated Nord Stream and Russian gas are sanctioned in Europe and Germany has found alternatives.
- Kushner and Dmitriev also discussed the sale of Lukoil assets to a consortium including the DFC, Qatar, and the UAE.
Top Russian and US officials, including US Special Envoy Jared Kushner and Kremlin adviser Kirill Dmitriev, have held discussions about bringing US investors into the Nord Stream pipelines, which previously supplied gas to Germany before Russia's invasion of Ukraine, according to five people with knowledge of the situation. Kushner, who is also the son-in-law of US President Donald Trump, views business deals as central to restoring peace and enabling US investors to profit from energy flows to Europe once the war concludes.
Dmitriev and Kushner have met in Moscow and New York in recent weeks, with the Nord Stream topic remaining on the agenda, two sources told Reuters. However, a White House official stated that there had been "no Nord Stream discussions recently" and that any deals would need to be negotiated with the US International Development Finance Corporation (DFC) and Treasury, and must benefit US taxpayers and companies.
A US official indicated that a deal is unlikely in the medium term due to significant obstacles, including US and EU sanctions on the Nord Stream pipelines, which would make any restart illegal. The possibility of Trump waiving or softening these sanctions could be complicated by a Democratic victory in the upcoming midterm elections.
Germany and other European countries, which are increasing their military spending to defend against Russia, would strongly resist reopening Nord Stream. A spokeswoman for Germany's economy and energy ministry confirmed that Nord Stream and Russian gas are sanctioned in Europe and that Germany has secured alternative energy sources, adding that any reopening would require government approval, which is not desired.
Before Russia's February 2022 invasion of Ukraine, Germany relied on the Nord Stream pipelines for over half of its gas supply. The pipelines were mothballed after Moscow reduced supply and were later damaged by underwater explosions in September 2022.
These talks occur amid deep European mistrust of Russia's motives. Earlier this year, European spy agencies suggested Russia was using US talks to push for business deals rather than seeking a swift end to the war. German lawmakers have accused Russia of a systematic campaign of hybrid attacks, and some believe business deals would bolster Moscow's war efforts. Michael Kellner, a German lawmaker, described the potential deal as a "dirty deal that will cost Europe dearly," with Americans and Russians sharing profits.
While Germany's coalition government opposes restarting the pipeline, the Alternative for Germany (AfD) party supports it and Dmitriev is scheduled to meet with AfD leadership next year to discuss selling Russian gas again. However, selling ownership of the Nord Stream company, which is 51% owned by Gazprom and partially by German entities, faces hurdles. The two German shareholders reportedly wish to retain their shares to maintain German influence.
Kushner also recently met in Kyiv and discussed energy prices with European counterparts, advocating for "prosperity agreements." While a gas deal might please the Kremlin, it could divide German public opinion and Europe, particularly countries like Poland and the Baltic states that are vulnerable to Russia and oppose energy ties.
Additionally, Kushner and Dmitriev have discussed the sale of Lukoil's European assets, including refineries and petrol stations, to a consortium involving the DFC, Qatar, and the UAE, with the condition that US authorities would lift sanctions. A White House official confirmed that Kushner and Steve Witkoff worked with the DFC on this deal, securing an upfront payment and profit interest for the United States.