Germany Promises to Assist the Ukrainian Energy Sector in the Framework of the Agreement with the United States

Germany will provide Kyiv with more than 200 million euros as additional financial assistance, 70 million will go to the development of green energy in Ukraine. Germany and the United States have reached an agreement on Nord Stream 2. Within the framework of an agreement with the United States on the settlement of the conflict over the Nord Stream 2 gas pipeline construction, Germany undertakes to provide Ukraine with additional financial assistance in the amount of more than 200 million euros. This is stated in a joint statement by Berlin and Washington, published on Wednesday evening, July 21. Germany will allocate about 70 million euros to the implementation of bilateral projects in the energy sector, in particular to the development of renewable energy sources in Ukraine and increasing energy efficiency, the statement further reads. Investment fund for the energy sector of Ukraine In addition, the United States and Germany will create a fund of at least one billion dollars. Its tasks will include financing investments in Ukraine's transition to renewable energy sources and improving energy security. The first contribution to the fund in the amount of 175 million dollars (in terms of almost 150 million euros) will be made by Germany. The exact time frame for the provision of these funds to Kyiv is not specified. In addition, the German government will work to expand this assistance in the coming years, the statement reads. At the same time, Berlin commits to direct its efforts towards reaching an agreement in the EU on investments in the Ukrainian energy sector up to $ 1.77 billion in the period until 2027. Berlin commits to comply with the requirements of the EU's Third Energy Package In addition, within the framework of the agreement reached with the United States, the German authorities undertake that they will fully comply with the parameters of the EU's Third Energy Package in the situation with Nord Stream 2. "We support the energy security of Ukraine, Central and Eastern Europe, in particular, we support the key principles enshrined in the EU's Third Energy Package. They relate to diversification and security of supplies," the two countries said in a joint statement. The Federal Republic of Germany emphasizes that it will abide by the letter and spirit of the Third Energy Package with regard to the part of Nord Stream under Berlin's jurisdiction, including unbundling and third-party access. German Social Democrats welcome the conclusion of the agreement German Foreign Minister Heiko Maas welcomed the adoption of a "constructive decision" to resolve the conflict with the United States. According to him, by doing so, Berlin and Washington will support the development of green energy in Ukraine and ensure gas transit through its territory for the next 10 years. German Social Democrats welcome the conclusion of an agreement between the United States and Germany, which "will allow completing Nord Stream 2 and putting it into operation," said a spokesman for the SPD faction in the Bundestag on Wednesday evening at DW's request. "It became obvious that the American administration has decided to end this controversial issue. It worked out, and we welcome it," he said. The Social Democrats also note that "part of the agreement is the guarantee of gas transit for Kyiv and ensuring the energy security of Ukraine." USA and Germany settle the conflict over the Nord Stream 2 project Earlier in the day, US Undersecretary of State for Political Affairs Victoria Nuland announced that Germany and the United States had resolved the conflict over the construction of Nord Stream 2, which had lasted for several years. The countries entered into an agreement according to which Germany pledged to take action in the event of Kremlin attempts to use energy as a weapon against Ukraine, or Russian aggression against Ukraine, she said in the Senate Foreign Affairs Committee. Countermeasures will be aimed at limiting Russian energy exports to Europe. In addition, the United States and Germany are committed to using leverage to extend the 2024 agreement on the transit of Russian gas through Ukraine, expiring in 2024, Nuland said. Both countries will also seek to reduce Ukraine's economic dependence on the transit and supply of Russian gas.