U.S. backs resumption of Russian gas to Europe via Ukraine ahead of winter: WSJ

The U.S. is backing a quick resumption of Russian natural-gas sales to Europe via pipelines running through Moscow’s wartime enemy—Ukraine—as part of negotiations aimed at securing an energy ceasefire ahead of the coming winter, the Wall Street Journal reported, citing U.S., European and Ukrainian officials.

The idea, broached by U.S. envoys Jared Kushner and Steve Witkoff during trips to Moscow and Kyiv in September, would involve selling Russian gas via a U.S. intermediary to circumvent European sanctions—and could create a lucrative opportunity for American investors, the report said.

Under current European Union legislation, all purchases of Russian natural gas must be phased out by the end of 2027. Leaders of Europe’s biggest nations have said that they have no interest in restoring their dependence on energy supplies from a country they view as their top strategic threat.

White House officials proposed that Russia deposit proceeds earned from these gas sales to Europe into an escrow account in a third-party jurisdiction so that the Kremlin won’t use the money to finance its war, said a senior U.S. official, according to the report. They have tried to sell the idea to European leaders as a way to lower energy prices ahead of a winter when Europe’s gas reserves have reached their lowest seasonal level in several years.

A senior Nordic official said the idea of resuming Russian gas purchases goes against everything the Europeans stand for.

The U.S., for its part, now sees an eventual reopening of Nord Stream as a potentially important component of a larger deal, not just to end the war in Ukraine but to resolve Russia’s longstanding friction with America’s European allies.

A U.S. official said negotiators had discussed various economic proposals throughout negotiations. Europeans have expressed interest in a proposal that would drastically reduce gas prices across the continent, the report added.

Russia and Germany built Nord Stream 1 to bypass Ukraine’s gas transit network in 2011. Both Nord Stream pipelines were damaged by underwater explosions in September 2022, making a restart lengthy. In contrast, the Ukraine transit route connecting Slovakia, Austria and Germany could resume operations almost immediately.