U.S. sanctions on Nord Stream 2 help Ukraine sign new gas deal with Russia – Prystaiko

At the beginning of the negotiations, Russia did not want to conclude an agreement, the minister said.

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Ukrainian Foreign Minister Vadym Prystaiko has said the sanctions under the 2020 National Defense Authorization Act (NDAA) against companies involved in the construction of the Nord Stream 2 gas pipeline helped Ukraine sign a new gas transit agreement with Russia.

"At the beginning of negotiations, Russia did not want to conclude an agreement, they wanted one year maximum, on very bad conditions for us. In addition, they said they were not in a hurry, they could conclude it this year or later. The agreement we ultimately managed to reach is much better. it's not perfect, but U.S. sanctions helped us achieve it, yes," the top diplomat told German newspaper Bild.

At the same time, Prystaiko said the issue of sanctions against German companies that had provided for the construction of a gas pipeline bypassing Ukraine was very sensitive, since Germany's support was important for Ukraine, while the project poses a threat to all EU countries.

Read alsoKobolyev: Ukraine's Naftogaz to transmit 75 bcm of Russian gas to Europe in 2020

"This is a very sensitive issue. Indeed, on the one hand, we value what Germany does for us, and were not delighted that any German project fall under sanctions. On the other hand, during the negotiations with our German partners, we constantly emphasized this is a bad project for Germany, the EU, and Ukraine. However, we have nothing to do with these sanctions," the minister said.

As UNIAN reported earlier, on December 30, Ukraine and Russia signed a new gas transit contract for a period of five years, obliging Russia's Gazprom to pump a minimum of 65 bcm of gas via Ukraine in the first year and 40 bcm in the next four years.

On December 20, U.S. President Donald Trump signed into law the 2020 National Defense Authorization Act, which contains a provision sanctioning Russia's Nord Stream 2 pipeline.

UNIAN memo. The Nord Stream 2 project envisages the construction and operation of two gas pipeline branches with a total throughput capacity of 55 billion cubic meters of natural gas per year from the coast of Russia through the Baltic Sea to Germany. It should connect Russia's Ust-Lug and Germany's Greifswald.

This new pipeline bypassing Ukraine is to be built next to the existing Nord Stream 1 pipeline. The construction of the pipeline should be completed before the end of 2019. The pipeline will be 1,220 km long.

Read alsoU.S. voices deadline for companies involved in Nord Stream 2, threatens with sanctions

The project is being implemented by Russia's Gazprom in alliance with European companies – ENGIE, OMV, Shell, Uniper, and Wintershall.

Ukraine stands against the construction of Nord Stream 2 as it will most likely lose its status of a gas transit country, while its potential revenue losses are estimated at US$3 billion annually. The project is also highly criticized by the U.S., Poland, and the Baltic States.

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