State Department denies White House discussion on lifting Nord Stream 2 sanctions

Politico reported this, citing its sources.

The report notes that restarting Nord Stream 2 could bring significant revenue to Moscow, but only if the EU agrees to resume purchases of Russian gas through the pipeline — a move that seems unlikely given Europe’s efforts to cut dependence on Russian energy. Still, lifting the sanctions would be a diplomatic win for Russia and a major boost for Trump.

According to sources, the main advocate for lifting the sanctions is U.S. special representative Steve Witkoff. They say Witkoff, who claims to have developed friendly ties with Putin during his time as Trump’s envoy in Moscow, has asked his team to compile a list of all U.S. energy sanctions against Russia.

One source told Politico that while Witkoff has raised the idea of lifting energy sanctions, it hasn’t gained much support inside the White House.

Specifically, Secretary of State Marco Rubio and Interior Secretary Doug Burgum, who also chairs the White House Energy Dominance Council, oppose such moves.

Sources also say some U.S. officials believe Witkoff may have been misled by Russian claims about the supposed economic benefits of renewing business ties with Moscow.

In addition to Nord Stream 2, discussions are also ongoing about lifting restrictions on the Arctic LNG-2 project, which could export up to 13.2 million tons of liquefied natural gas annually if sanctions were removed.

Two people familiar with the matter told Politico that several outside figures are lobbying the administration to lift the sanctions. One of them is Stephen Lynch, head of Monte Valle Partners, a Miami-based international private equity firm.

Lynch focuses on buying energy infrastructure assets that once belonged to Russia. In 2007, he and his partners acquired some of the assets of Russian oil giant Yukos at a steep discount. He also recently bought the Swiss arm of Sberbank and has applied to the U.S. Treasury for a license to buy the pipeline.

The report says former intelligence officer and longtime Putin associate Matthias Warnig — currently under U.S. sanctions — is also pushing for the pipeline’s restoration, with backing from American investors. He reportedly reached out to Trump’s team through U.S. business contacts. His effort is said to be separate from the Lynch consortium.

State Department reaction

Secretary of State Marco Rubio responded to the Politico story.

“This is unequivocally false. Neither Steve Witkoff nor I have had any conversations about lifting sanctions against Russia as part of a deal with Ukraine,” Rubio posted on X.

• In late March, Russian Foreign Minister Sergei Lavrov claimed that Russia was discussing with the U.S. the possible resumption of gas supplies to Europe via Nord Stream.