Putin seeks common cause with Merkel over Trump

As Germany and Russia take steps to increase cooperation in gas trade, the US, sidelined by Europe after withdrawing from the Iran nuclear deal, expresses concern and dangles sanctions.

Russia's Gazprom and five European companies, with German backing, plan to build the North Stream 2 gas pipeline on the Baltic seabed to connect Russia directly with Germany, bypassing eastern Europe and limiting the flows via Ukraine.
Reuters

Russia's Gazprom and five European companies, with German backing, plan to build the North Stream 2 gas pipeline on the Baltic seabed to connect Russia directly with Germany, bypassing eastern Europe and limiting the flows via Ukraine.

Russian President Vladimir Putin said at a meeting with German Chancellor Angela Merkel on Friday that he would stand up to any attempts by US President Donald Trump to block a Russian-German gas pipeline project.

Berlin and Moscow have been at loggerheads since Russia's annexation of Crimea four years ago, but they share a common interest in the Nord Stream 2 pipeline project, which will allow the EU to import more natural gas from Russia.

Russia's Gazprom and five European companies, with German backing, plan to build the North Stream 2 gas pipeline on the Baltic seabed to connect Russia directly with Germany, bypassing eastern Europe and limiting the flows via Ukraine.

The pipeline will double Russia's gas export capacity to Germany but threatens to cost Ukraine valuable revenues.

Loading...

A US government official this week said Washington had concerns about the project, and that companies involved in Russian pipeline projects faced a higher risk of being hit with US sanctions.

"Donald is not just the US president, he's also a good, tough entrepreneur," Putin said at a news conference, alongside Merkel, after the two leaders met in the Russian Black Sea resort of Sochi.

"He's promoting the interests of his business, to ensure the sales of liquefied natural gas on the European market," Putin said, departing from his usual approach of being scrupulously respectful when speaking about Trump.

"But it depends on us, how we build our relations with our partners, it will depend on our partners in Europe."

"We believe it (the pipeline) is beneficial for us, we will fight for it."

Future of Iran nuclear deal

European capitals are also at odds with Washington over Trump's decision to withdraw from the Iranian nuclear deal. Moscow shares Europe's position on the deal.

Some commentators have said that a shared opposition to Trump's stances on Iran and other issues could lead to a rapprochement between Europe and Russia, repairing a relationship badly damaged by the Ukraine conflict.

Merkel, who earlier in the day received a bouquet of pink and white roses from Putin as she arrived at his residence in Sochi, also hinted at tensions between Berlin and the Trump administration.

Asked about differences with the United States over the Iran deal and other issues, Merkel told reporters: “We have a strong transatlantic friendship, which during its history has had to withstand many questions of different opinions, and I think that might be the case now as well."

While the Russian leader is frequently critical of US policy, he has been meticulous about not attaching blame to Trump personally. Kremlin officials have said in the past the two men have a personal rapport that Putin wishes to preserve.

Pipeline politics

European states involved in Nord Stream 2 say it is a purely commercial project but the Trump administration say it is helping the Kremlin pursue its political agenda.

The pipeline may result in less Russian gas being transported via Ukraine, depriving Kiev's struggling pro-Western government of transit fees that are a vital source of revenue.

In a nod to the US concerns, Merkel said Russian gas should still be pumped through Ukraine. "We see Nord Stream 2 as an economic project but it also has implications and that's why we are working on what guarantees Ukraine could be given," she said.

Putin said he was willing to negotiate with Kiev about the continued transit of Russian gas.

Ukraine to offer discounted fees for Gazprom

Ukraine will offer Gazprom discounted fees for natural gas transit to ensure a flow from Russia to Europe after 2020, European Commission Vice President for Energy Union Maros Sefcovic said on Friday.

"Ukraine is saying they want to maintain the transit of Russian natural gas to Europe and will seek solutions that would guarantee the higher the volume the cheaper for Gazprom," Sefcovic told Reuters at the Globsec security forum.

The volume of transit would have to be "commercially viable" for Ukraine, Sefcovic added.

According to energy firm Naftogaz's expectations, Ukraine will earn around $3 billion from transit in 2018.

Russian President Vladimir Putin said on Friday after meeting with German Chancellor Angela Merkel that Moscow was ready for talks with Ukraine on continued gas transit through the country.

Route 6