 "A gas worker walks between pipes in a compressor and distribution station of the Urengoy-Pomary-Uzhgorod gas pipeline, some 30 km (19 miles) from the south western Russian city of Kursk, January 4, 2006. File Image/Reuters")
The US has reportedly asked Ukraine to hand over control of a key pipeline used to carry Russian gas to Europe as both nations discuss a much-anticipated minerals deal.
Reuters has reported that the issue of the pipeline was raised on Friday (April 11) between US and Ukrainian officials.
The news agency reports that the latest version of the minerals deal is more “maximalist” than the original version presented in February, which proposed US getting control over $500bn worth of rare metals as well as oil and gas.
The US reportedly wants the International Development Finance Corporation to take control of the pipeline.
The pipeline stretches from the town of Sudzha in western Russia all the way to the Ukrainian city of Uzhhorod, near the EU border with Slovakia. It’s about 750 miles (1,200 kilometres) long and was built during the Soviet era.
This pipeline has been a vital piece of infrastructure, serving as a major route for gas exports.
On January 1st, Ukraine stopped the gas flow after its five-year deal with Russia’s state-owned energy giant Gazprom came to an end. Until then, even during the first three years of the ongoing war, both countries had continued to earn hundreds of millions of euros from transit fees.
Ukraine President Volodymyr Zelenskyy initially proposed the minerals deal to the Trump administration, hoping to secure weapons supplies in future. However, Trump shied away from extending security commitments or military support but insisted on the minerals deal anyway.
Impact Shorts
More ShortsLast week, Trump even accused Zelenskyy of trying to “back out of an agreement”, warning him of “big problems” if he failed to approve the deal.
Speaking to journalists on Thursday, Zelenskyy said he was open to a deal to modernise the country’s gas transit infrastructure. However, he stressed that any agreement would have to be based on “parity” — meaning both sides should benefit equally. Specifically, he said Ukraine would only agree if revenues were split “50-50.”
“I am just defending what belongs to Ukraine. It should be beneficial for both the United States and Ukraine. This is the right thing to do,” Zelenskyy said. The US Treasury later confirmed “technical” talks were ongoing.
(With inputs from agencies)