Russia, US and Germany Discuss Resuming Supplies Via Druzhba Pipeline

The US, Russia, and Germany are holding closed-door negotiations on resuming Russian energy supplies to Europe, including through the Soviet-era Druzhba pipeline, The Bell reported.

Previously, discussions focused only on the possible relaunch of Nord Stream 2, a pipeline designed to transport Russian natural gas to Europe via the Baltic Sea. It ceased operations following US sanctions and Germany’s decision to halt its certification in response to Russia’s full-scale invasion of Ukraine.

Now, the Druzhba pipeline, which runs through Ukrainian territory, has become a key point of discussion, The Bell reported.

Russia used this pipeline to transport gas to Europe until Ukraine stopped transit on Jan 1. According to The Bell, one of the conditions for resuming Russian gas deliveries through the Druzhba is a truce in Ukraine.

Until 2022, the Druzhba pipeline supplied oil to several EU countries, with Slovakia and Hungary still receiving Russian oil through this route. Following Russia’s full-scale invasion of Ukraine, Germany completely halted oil imports from Russia.

Before that, the main buyer in Germany was the PCK Schwedt refinery, owned by the Russian state company Rosneft. In February 2022, the German government stripped Rosneft of control over its assets in the country.

Currently, Schwedt receives oil from the German Baltic port of Rostock, Gdańsk in Poland, and via transit from Kazakhstan.

At the end of 2023, Russian President Vladimir Putin stated that Russia was negotiating with Kazakhstan to sell Rosneft’s share in Schwedt, but Kazakh authorities denied this claim, the media outlet wrote.

Now, the negotiations are taking place behind closed doors between US and Russian representatives. On the German side, Chancellor Olaf Scholz’s office and the Ministry of Economy are involved, while the Foreign Ministry remains uninvolved, the Bell reported.

One participant of the negotiation says: “The fewer German agencies involved, the higher the chances of closing the deal.”

US companies have shown interest in acquiring Rosneft’s assets in Germany, including stakes in PCK Schwedt as well as German companies Micro and Bayernoil.

According to The Bell, Washington is also discussing the potential relaunch of the undamaged section of Nord Stream 2, which could also end up with US owners.

By simultaneously imposing trade tariffs, Donald Trump’s administration is essentially putting Europe in a bind, the media outlet wrote.

Sources suggest that these negotiations could be part of a broader US-Russia deal, which includes ending the war in Ukraine.

“Two parties are clapping their hands – Russians and Americans. One sells raw materials, the other delivers them. They both profit, while all of Europe pays,” said one of the negotiation participants.