Why the Biden administration is reportedly waiving sanctions on Russia's Nord Stream 2 pipeline

Nord Stream 2 construction.
(Image credit: ODD ANDERSEN/AFP via Getty Images)

Back in February, White House Press Secretary Jen Psaki said the Biden administration considered the Nord Stream 2 pipeline, which will transport natural gas from Russia to Germany, "a bad deal" that "exposes Ukraine and Central Europe" to Moscow and "goes against Europe's own stated energy and security goals." Similarly, during his confirmation hearing, Secretary of State Antony Blinken said he is "determined to do whatever we can to prevent" the completion of the controversial pipeline. But on Tuesday, Axios reported the Biden administration is set to waive sanctions on the company overseeing its construction, as well its CEO, Matthias Warnig, who is considered a "crony" of Russian President Vladimir Putin.

That doesn't mean President Biden now supports Nord Stream 2 — on the contrary, the White House reportedly still hopes it doesn't go into use — but it does suggest his administration feels sanctions are ultimately a bigger risk than safeguard. Per Axios, sources close to the situation said that Biden officials have determined sanctioning the German-end users of the gas is the only way to stop construction, 95 percent of which is already complete, at this point. The administration simply doesn't want to jeopardize its relationship with Berlin over the pipeline.

The waivers reportedly could be lifted, and sanctions reinstated, at any moment, so administration sources told Axios the looming threat should still give Washington leverage in the situation. Read more at Axios.

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