Germany denies offering U.S. ‘dirty deal’ to drop sanctions against Nord Stream 2

Germany denies offering U.S. ‘dirty deal’ to drop sanctions against Nord Stream 2

The German government has denied claims by an environmentalist group that it offered Washington ‎€1 billion ($1.21 billion) to boost imports of American liquefied natural gas (LNG) in exchange for dropping Nord Stream 2 sanctions.

On Tuesday, a group called Environmental Action Germany published a letter from Finance Minister Olaf Scholz to former U.S. Treasury Secretary Steve Mnuchin, offering the alleged deal.

In the letter, Scholz refers to the talks between the two officials, which appear to have centered around the Nord Stream 2 pipeline and imports of American LNG. In the attached “non-paper” section, the minister said that the German government “is very concerned” about US sanctions against the project, which endanger completion and subsequently put European energy security at risk.

While stressing that Berlin rejects both "direct pressure" from Washington and its punitive measures, the German government still came up with "a way forward." In addition to increasing European purchases of American LNG, the German government was ready to massively boost investment in construction of LNG terminals on its territory.

"The German government is willing to massively increase its public support for the construction of LNG terminals along the German coastline in order to secure the construction of LNG terminals in Brunsbuettel and Wilhelmshaven and by providing up to €1bn," the letter read.

Shortly after the document emerged, Germany’s Minister for Environment, Nature Conservation and Nuclear Safety Svenja Schulze said that no such deal ever existed.

"There is no dirty deal. It doesn’t exist. I strongly deny this," the minister said as cited by Russian media.

Other German proposals included ensuring continued gas transit through Ukraine and supporting a Polish gas pipeline known as the Baltic Pipe, as Warsaw seeks to cut energy imports from Russia.

In return, the U.S. would allow the completion and operation of Nord Stream 2. “Future legislation, which could be the basis for sanctioning Nord Stream 2, will either not be used or, in the case of compulsory sanctions provisions, blocked by waivers or other adequate and effective tools," according to the letter. 

While the environmental group that made the letter public does not support the construction of the Russian pipeline, it called the proposal to the U.S. a "dirty deal" at the expense of taxpayers. The group demanded clarification from the government on the matter.

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