PODCAST EXCLUSIVE

US-Ukraine relations: Nord Stream 2 and proposed plans for Biden-Zelensky cooperation

It’s been a month and a half since Joe Biden took office as the 46th president of the United States. This week we are discussing two aspects of Ukraine-U.S. relations: The Nord Stream 2 pipeline with staff writer Alexander Query, and proposed plans from the Atlantic Council and Kyiv Security Forum for Biden-Zelensky cooperation with Kyiv Post editor-in-chief Brian Bonner.

Full Transcript below:

US-Ukraine relations: Nord Stream 2 and proposed plans for Biden-Zelensky cooperation

 

Elina Kent: Welcome to the Kyiv Post Podcast, where you can tune in to stories that give you a deeper understanding of Ukraine.

I’m your host Elina Kent. I’m a multimedia producer and lifestyle journalist here at the Kyiv Post. 

It’s been a month and a half since Joe Biden took office as the 46th president of the United States. We had a previous podcast episode on what the Biden administration means for Ukraine back in January, which you can listen to on the Kyiv Post website and all streaming platforms. 

This week we are discussing two aspects of Ukraine-U.S. relations: The Nord Stream 2 pipeline with staff writer Alexander Query, and proposed plans from the Atlantic Council and Kyiv Security Forum for Biden-Zelensky cooperation with Kyiv Post editor-in-chief Brian Bonner. 

Welcome! 

Alexander Query: Thank you for having me. 

EK: So Republican lawmakers have been pressing the Biden administration to act against the Nord Stream 2 pipeline. 

AQ: So basically what happened is five U.S. Republican lawmakers led by Representative Michael McCaul sent a letter to Secretary of State Antony Blinken on March 8th urging the Biden administration to act against Russia’s controversial Nord Stream 2 pipeline. 

So the letter asks the Biden administration to implement sanctions under the Protecting Europe’s Energy Security Act, legislation that came into force in January 2021 calling on Russia to “cease using its energy resources for coercive purposes.” 

The official letter also inquires about the lack of sanctions against entities reportedly engaged in the project. 

So this move follows Republican Senator Ted Cruz’s decision to put a hold on March 5 on the final confirmation of President Joe Biden’s Central Intelligence Agency director nominee William Burns, now that was according to Bloomberg.

EK: Cruz asked the White House to apply recently authorized sanctions against companies building the pipeline from Russia to Germany under the Baltic Sea. 

“I’ll release my hold when the Biden admin meets its legal obligation to report and sanction the ships and companies building Putin’s pipeline,” Cruz wrote on Twitter the same day.

What is Biden’s stance on the pipeline?

AQ: Biden is between a rock in the hard place, he publicly called the pipeline a “bad deal for Europe,” right, but has so far resisted imposing new sanctions on entities involved in the construction of Nord Stream 2, even though U.S. lawmakers argued it would be the most effective way to stop Russian President Vladimir Putin.

And time is running out for the Biden administration, as the pipeline is 94% complete and proceeding quickly. 

Around 120 kilometers of the pipeline remains to be laid in Danish waters as well as 30 kilometers in German waters according to Russia’s state-owned energy giant Gazprom, which is behind the project.

EK: If completed, the Nord Stream 2 pipeline would allow Russia to bypass Ukraine when transporting gas to European countries through Germany. 

Ukraine’s Foreign Minister Dmytro Kuleba called Nord Stream 2 “a bad project” as well, not only for Ukraine but also Europe, during an interview with French outlet France24 on March 5. 

AQ: Well the unfinished $11 billion construction project launched in 2015 has become one of the most hotly disputed issues between the United States and Germany since the U.S. started implementing sanctions against companies involved in its construction in December 2019. 

The U.S. and several EU members argue that the project will increase Europe’s dependence on Russian gas. However, Germany supports the project, which could make it Europe’s main gas supplier. 

Russia and Ukraine signed a five-year agreement through 2024 that guarantees Russia will transport no less than 40 billion cubic meters through Ukraine each year and must pay Ukraine at least $7.2 billion over the course of the contract.

However, if Nord Stream 2 is completed, it will double the amount of Russian natural gas exported to Germany to an annual 110 billion cubic meters and will allow Russia to bypass Ukraine entirely, depriving the country of at least $1.5 billion per year.

EK: That was Alexander Query on how Republican lawmakers have been pressing the Biden administration to act against Nord Stream 2 pipeline which you can also read on our website. Thank you Alex.

AQ: Thank you for having me. 

EK: Last Friday on March 5th, the Atlantic Council released a strategy for the Biden administration in relation to Ukraine. 

Titled “Biden and Ukraine: A strategy for the new administration”

In the brief, top experts and former US ambassadors to Ukraine lay out a plan for how the Biden team can repair relations with Ukraine, encourage President Volodymyr Zelenskyy’s team to commit once and for all to lasting reform in the country, and how to engage in the peace process to end the conflict in the Donbas. 

We are here with Kyiv Post editor-in-chief Brian Bonner with more on the subject:

So it’s not only the Atlantic Council that published recommendations – 

Brian Bonner: Well the Kyiv Security Forum which is run by former Prime Minister Arsen Yatsenyuk he had a bunch of experts, more than 70, half from the US half from Ukraine who signed on to a 12 point program for Ukraine US relations. But the Atlantic Council is a very good report – 14 page report, by 6 of their experts including 2 former ambassadors, John Herbst and William Taylor.

EK: The points cover Democratic Values, strengthening sanctions, Crimea, corruption…

BB: The usual, the usual as we say. Well I have to say: what is the state of play now. Obviously there were very high hopes when Joe Biden was elected because people wanted to get away from the nightmare of Donald Trump and the impeachment fiasco and everything. And there are high hopes because Joe Bdien has been here 6 times as vice president but we have to say the early moves are disappointing and I’ll tell you why. Clearly the disappointment stems from the fact that he hasn’t called President Zelensky yet. He let alone meet – we still don’t have a US ambassador named for Ukraine. And it looks like President Biden doesn’t want to stop the Nord Stream 2 Project. Why do I say that? Because he is not following congresses bipartisan recommendations to sanction all companies and people involved in the project, that would stop the project cold. Looks like Biden has prioritized his relationship with Germany over Ukraine and so there’s reason for disappointment here.

EK: Not a great start, not as strong as a start Ukraine was hoping for from the Biden administration. 

BB: What the fear is among Ukrainains and among Americans and other people who support Ukraine is that Biden is going to go the route of Barack Obama, which for all Obama’s strengths he never thought Ukraine was very important, and certainly after Russia invaded the sanctions were quite weak. And the other thing that is quite worrisome is that he said he would coordinate with Europe. Well the EU is 27 different nations, they all have to agree, so you get the weakest possible acceptable sanctions by all 27 not nothing strong enough to isolate Russia or punish Russia. 

What has to happen is awakening, that we don’t want a war with Russia, but they are a rogue regime, rogue kleptocracy, repressing their own citizens. And so we think that more than justifies isolating Russia and keeping crushing sanctions on that. By that I mean sovereign debt, prohibiting financial transactions, sanctioning Putin and all those people close to them. I know it’s a touchy subject to sanction the head of state. But this has to happen for Russia to get the message, and change its behavior which is what we want. 

EK: Thank you so much for giving us the main points of what we are hoping from the Bidne administration.

BB: Thank you, glad to be here. 

EK: That was this week’s episode of the Kyiv Post podcast. I’m your host Elina Kent.. You can subscribe to our podcasts on all streaming platforms and follow along the Kyiv Post website. Stay safe, stay home, and subscribe to the Kyiv Post.