'Biden's Guy' Appointed as US Energy Envoy to Help Implement Nord Stream 2 Deal, Report Says

Last month, US President Joe Biden and German Chancellor Angela Merkel reached a deal that requires Washington to allow for the unhindered completion of the Nord Stream 2 gas pipeline project, including refraining from sanctions.

President Joe Biden has appointed former adviser Amos Hochstein as the State Department energy envoy to deal with "implementing a US-Germany deal allowing the Nord Stream 2 pipeline to be completed", Axios revealed on Monday.

The news outlet cited unnamed sources as saying the appointment stipulates that sticking to the pipeline deal will be a key priority for Hochstein, who "has been a leading voice" against Nord Stream 2 and is sometimes referred to as "Biden's guy".

One source claimed that by appointing the 48-year-old Hochstein to the post, the White House is "trying to hide this terrible [US-German] deal behind his credibility in the hopes it will make people forget just how bad this deal is".

Amos Hochstein, centre, U.S. State Department Special Envoy for International Energy Affairs, is escorted by U.S. Ambassador to Athens David D. Pearce, second right, as they arrive for a meeting with Greek Foreign Minster Nikos Kotzias in Athens, Greece, on Friday, May 8, 2015

© AP Photo / Yorgos Karahalis

Another insider told Axios that "it's frankly good to have someone who is deeply suspicious of the project and of Russian intentions because he will push hard to execute an effective strategy to manage the threat".

The remarks come after Politico first reported in April that Hochstein was under consideration to be nominated for a special envoy role to help "kill [the] Russia-Germany energy pipeline", an apparent nod to Nord Stream 2. The report emerged several months before Biden moved to waive sanctions against the project and allow it to move forward, stressing the need to boost Berlin-Washington ties.

Russian Ambassador to Germany Sergey Nechayev has, meanwhile, stated that the construction of Nord Stream 2 will be completed within several weeks, and the US-German deal will not affect "the speed of the construction and the completion date".

US-German Deal on Nord Stream 2

In July, Germany and the US struck a deal that implies the completion of the project without the threat of American sanctions. Among the conditions stipulated in the agreement, Germany vowed to prevent Russia from "using energy as a weapon" and to use all possible leverage to prolong Russian gas transit through Ukraine.

German Chancellor Angela Merkel, for her part, asserted that the Berlin-Washington deal on Nord Stream 2 does not resolve all the differences between the two countries with regard to the project, but that it marks a step forward.

Washington Scraps Sanctions Against Nord Stream 2

The US and its allies in Eastern Europe, especially Poland and Ukraine, have been actively opposing the construction of Nord Stream 2. Washington previously slapped two rounds of sanctions on the project, arguing that once Nord Stream 2 is operational, Europe will become even more dependent on Russia's energy resources, something that will allegedly help Moscow gain political leverage.

FILE PHOTO: Workers are seen at the construction site of the Nord Stream 2 gas pipeline, near the town of Kingisepp, Leningrad region, Russia, June 5, 2019

© REUTERS / Anton Vaganov

The Biden administration, however, then waived sanctions against Nord Stream 2, saying Washington moved not to obstruct the pipeline's construction because it realised sanctions would not work and because it wanted to avoid alienating Berlin.

Moscow has repeatedly underlined that the project is purely economic, and the way in which the White House opposes it is an example of unfair competition.

Nord Stream 2 aims to carry 55 billion cubic metres of gas a year across the Baltic Sea, bypassing Ukraine, which is now especially concerned over the looming halt in transit payments.

The project's implementation is being financed by the Russian energy giant Gazprom, Germany's Uniper and Wintershall, as well as France's Engie, Austria's OMV, and the UK-Dutch concern Royal Dutch Shell. The Nord Stream 2 pipeline's operator says it hopes to complete the project by the end of August, adding that the "work is 98% done".