What Happened: Poland, Ukraine and the United States have signed a memorandum on energy cooperation to support Kyiv's energy diversification efforts and reduce its dependence on Russian energy imports, S&P Global reported Sept. 2. The deal calls for a new interconnector pipeline between Poland and Ukraine to increase the capacity for gas flows from 1.5 billion to 6 billion cubic meters by 2021.
Why It Matters: The trilateral agreement comes as Ukraine is attempting to diversify its energy supplies from Russia and just a few months before a natural gas transit contract between Ukraine and Russia will expire. Poland has long been supporting Kyiv's efforts of reducing its dependence on Russian energy imports by expanding reverse flow capabilities and opposing the Nord Stream 2 pipeline along with the United States.
Background: The United States has long been considering imposing sanctions on Nord Stream 2, which would allow direct Russian natural gas exports to Germany, bypassing Poland, the Baltic states and Ukraine. Four U.S. senators introduced legislation on May 15 to impose financial and travel sanctions on companies and individuals involved in the project.