Daily on Energy: Biden yields to Nord Stream 2 pipeline completion

US AND GERMANY NOTCH NORD STREAM 2 DEAL: The U.S. and Germany are expected to announce a deal today paving the way for the completion of Russia’s Nord Stream 2 natural gas pipeline, as the Biden administration effectively yields to the inevitability of the project’s construction and looks to repair relations with its key European ally.

The two sides are committing to ensuring that Ukraine continues to receive roughly $3 billion in annual transit fees for natural gas that Russia pays under an agreement with Kyiv, the Wall Street Journal reports.

Ukraine, also a U.S. ally, fears the pipeline will strengthen Russia’s influence.

Germany and the U.S. will also invest in Ukraine’s clean energy infrastructure, spend on energy efficiency projects, and ensure energy security, according Reuters.

The $11 billion Nord Stream 2 pipeline, which is 98% complete, will double the volume of natural gas exported to Germany via an existing portion of the pipeline, using a route beneath the Baltic Sea, while bypassing an existing path through Ukraine.