Putin ally, backed by US investors, pushes plan to restart Nord Stream 2 pipeline

Matthias Warnig is a former East German spy and longtime associate of Russian President Vladimir Putin. Recently, he has been working to revive the Nord Stream 2 gas pipeline to Europe.

That wouldn’t be so unusual, except– he has the backing of US investors in this endeavour.

An ex-Stasi officer, Warnig led the Nord Stream 2 pipeline company until 2023. Financial Times, citing multiple sources familiar with the talks, reported that he has been behind discussions involving American businessmen and Trump administration figures.

The efforts are part of back-channel negotiations aimed at brokering an end to the war in Ukraine while fostering deeper economic cooperation between the US and Russia.

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This move, once unthinkable, has now come to pass thanks to US President Donald Trump’s efforts to get closer to Moscow.

Several prominent figures within Trump’s administration are aware of the initiative, sources said, viewing it as a strategic opportunity to rebuild relations with Moscow.

Senior European Union officials were recently made aware of the discussions and have expressed concern. Financial Times reported citing multiple officials who were aware of the situation.

Leaders in several European capitals have privately discussed the potential ramifications of such an agreement.

A contentious pipeline revival

The Nord Stream 2 pipeline, designed to transport Russian natural gas to Germany, has been dormant since sanctions were imposed following Russia’s invasion of Ukraine.

One of its twin pipelines was damaged in sabotage attacks in 2022, while the second remains intact but has never been operational.

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The latest proposal would, in theory, grant the US substantial control over energy supplies to Europe, sources said, as the continent has moved to reduce its dependence on Russian gas.

Challenges to the revival

However, major obstacles remain.

Reviving the pipeline would require Washington to lift sanctions, Russia to resume gas sales, and Germany to approve operations for European buyers.

Germany suspended the pipeline’s certification process in 2022 and never issued the necessary operating permits, further complicating any attempt to revive the project.

The pipeline’s ownership structure presents another challenge. Nord Stream 2 is wholly owned by Gazprom, but five European energy firms– Shell, Uniper, OMV, Engie, and Wintershall– contributed nearly half of its $11 billion construction costs through loans.

All five companies have since written off their investments.

Trump pivots on Nord Stream 2

During his first term, Trump was a vocal critic of Nord Stream 2, arguing that Germany’s reliance on Russian gas strengthened Moscow’s geopolitical influence while undermining Europe’s security.

The pipeline became a symbol of Europe’s energy dependence on Russia, which Trump repeatedly condemned.

However, members of Trump’s team now view Nord Stream 2 as a potential bargaining chip in negotiations with Russia.

The talks come as the Trump administration accelerates its push for a peace deal with Russia, largely bypassing European and Ukrainian officials, a move that has alarmed US allies.

The potential acquisition of Nord Stream 2 by American investors could give Washington a degree of leverage over Russian gas exports to Europe– a market that has increasingly turned to US liquefied natural gas (LNG) shipments as an alternative to Russian supplies.