The US and Russia are looking for ways to restore Russian gas supplies to Europe - Reuters
Kyiv • UNN
The US and Russia are negotiating the restoration of gas supplies to Europe. America may act as a mediator to relieve political tension and influence supply volumes.
Against the background of frozen energy relations between Europe and Russia, representatives of the United States and the Russian Federation held talks on possible US assistance in restoring Russian gas sales to Europe. This is reported by Reuters with reference to eight sources familiar with the negotiations, writes UNN.
Details
After Russia's invasion of Ukraine in 2022, Europe sharply reduced its imports of Russian gas, resulting in losses of $7 billion for Russian exporter Gazprom in the following year.
US President Donald Trump seeks to achieve peace in Ukraine, which is believed to help restore gas relations.
Sources close to the bilateral talks said that restoring Russia's role in the EU gas market could help secure a peace agreement with Russian President Vladimir Putin.
Although most European countries have found alternative sources of supply, some buyers remain, and industry officials believe that more countries may return to Russian gas after the conclusion of peace.
Losses in the European gas market are the most painful blow to the Russian economy in the last three years. Currently, Russia provides only 19% of European demand, while before the war this figure reached 40%, mostly due to LNG (liquefied natural gas) and supplies through Turkey via the TurkStream gas pipeline.
The participation of the United States in these processes can help Moscow overcome political resistance in Europe. It is also beneficial for Washington - it provides an opportunity to influence the scale of the return of Russian gas to Europe, two diplomatic sources and a source in the White House noted.
Since 2022, Europe has started importing gas from other sources, including LNG from the United States.
Diplomats Steve Witkoff from the United States and Kirill Dmitriev - Putin's investment representative - discussed gas issues as part of peace talks on Ukraine, two of the eight sources said.
Witkoff's representative declined to comment on whether the topic of Russian gas exports to Europe was discussed.
"There are no such negotiations at the moment," the Russian Direct Investment Fund, headed by Dmitriev, said in a statement.
Gazprom will consider the possibility of selling gas to Europe if the gas transportation system between Russia and Europe comes under the control of a new owner, Kremlin spokesman Dmitry Peskov said in an interview with the French magazine Le Point in April.
Gazprom controls two branches of the Nord Stream 1 and Nord Stream 2 gas pipelines, shares in which are held by European companies.
Moscow is ready to supply gas and knows that some EU countries still want to buy it, Peskov said. "There is a gas seller, there are potential buyers," he said in April.
Among the countries that still buy gas from the Russian Federation are Hungary and Slovakia (receiving gas through TurkStream), as well as Belgium, France, the Netherlands and Spain, which purchase LNG from the Russian company Novatek under long-term contracts.
Regarding the possible participation of the United States, five sources said that options are being discussed for American investors to acquire stakes in the Nord Stream gas pipeline, in the pipeline passing through Ukraine, or in Gazprom itself. The United States can also act as a buyer - buy gas from Gazprom and supply it to Europe, including Germany.
Two sources added that diplomats discussed a scenario in which an American company would buy Russian gas and export it to Europe, which could ease political tensions surrounding the issue.
The funds BlackRock, Vanguard and Capital Group own stakes in Gazprom ranging from 1 to 2%.
BlackRock, Vanguard and Gazprom did not respond to requests for comment. Capital Group declined to comment.
The European Commission also declined to comment. Its President Ursula von der Leyen spoke out against returning to the purchase of Russian energy resources.
Some still believe that we should reopen the valve for Russian gas and oil. This would be a historic mistake, and we will not allow it. Russia has repeatedly proven that it is an unreliable supplier
Brussels plans to ban new gas agreements with the Russian Federation by the end of 2025 and terminate imports under existing contracts by the end of 2027. The plan is to be considered next month and requires the support of the European Parliament and a majority of member states. Hungary and Slovakia have already opposed it.
Trump said he hopes for a quick achievement of peace in Ukraine, which will open the possibility for "big business" between the United States, Russia and Ukraine.
Putin said that Russia is ready to immediately resume gas exports to Europe if there is political will.
On April 30, Ukraine and the United States signed an agreement on mineral resources, which covers all resources and infrastructure owned by the Ukrainian state, but gas pipelines are not directly mentioned there.
If the level of interaction between the United States and Russia is maintained, it is very likely that the supply of Russian gas will be restored... with the participation of American intermediaries
Gazprom, interested in returning to the European market, may offer German customers short-term contracts for 24 months with significant discounts, two sources noted. Previously, the company demanded contracts for a decade.
Obstacles
However, the EU is mostly against this, and there are a number of other problems. Legal disputes over broken contracts remain.
The Nord Stream gas pipelines were damaged by sabotage in September 2022. Three of the four pipes were destroyed, leaving only one suitable for gas transportation.
The war in Ukraine has also changed the situation - Russian strikes have damaged pipelines on Ukrainian territory, although the main transit route remains functional.
Another technical problem: Nord Stream 2 never received permission from the German government to start deliveries, the German Ministry of Energy emphasized, declining further comment.