WASHINGTON, July 21 – The U.S. and Germany reached an agreement to allow completion of the $11 billion Nord Stream 2 pipeline, a thorny, long-standing point of contention between the allies, CNBC reported Wednesday.

The agreement allows the controversial Nord Stream 2 pipeline to complete, but this may give Russia an opportunity to divert its natural gas supplies away from Ukraine, thus erasing $2 billion annually in revenue and hurting its economy.

“The Biden administration's concessions on Nord Stream 2 are incomprehensible,” Anders Aslund, a senior fellow at the Atlantic Council in Washington, tweeted on Wednesday. “The aim of this project is geopolitical, to tie Germany to Russia & break up the EU & NATO. Such treasonous activities among allies must not be supported or accepted.”

“By effectively supporting Nord Stream 2, the Biden administration goes against its national security strategy, its allies & divides NATO & the EU,” Aslund said.

The agreement reached between Washington and Berlin also aims to invest more than 200 million euros in energy security in Ukraine as well as sustainable energy across Europe, CNBC reported.

“Should Russia attempt to use energy as a weapon or commit further aggressive acts against Ukraine, Germany will take action at the national level and press for effective measures at the European level, including sanctions to limit Russian export capabilities to Europe in the energy sector,” a senior State Department official said on a call with reporters on Wednesday.

The senior State Department official, who requested anonymity in order to discuss the agreement candidly, added the U.S. will also retain the prerogative of levying sanctions in case Russia uses energy as a tool of coercion.

The official said the United States and Germany are “resolutely committed to the sovereignty and territorial integrity” of Ukraine and therefore, consulted closely with Kyiv on this matter.

The unease surrounding the nearly complete Nord Stream 2 project, a sprawling undersea pipeline that will pump Russian gas directly into Germany, stems from Moscow’s history of using the energy sector to gain leverage over Russia’s neighbors, namely Ukraine.

When completed, the undersea pipeline will span 764 miles from Russia to Germany, making it one of the longest offshore gas pipelines in the world. Last month, the Kremlin said that only 62 miles of Nord Stream 2 were left to build.

In May, the Biden administration waived sanctions on the Swiss-based company Nord Stream 2 AG, which is running the pipeline project, and its German chief executive. The waiver gave Berlin and Washington three more months to reach an agreement on Nord Stream 2.

Gary Kasparov, a former World Chess Champion and Russian political activist who lives in exile in the U.S. due to Putin’s persecution of Russian opposition figures, said the agreement will encourage Putin to continue his aggressive policies.

“Ukraine has been treated like an annoyance by Europe while under attack by Putin,” Kasparov tweeted Wednesday. “The US has decided that superficial comity with an ally is better than long-term deterrence against a hostile dictatorship. That's not leadership.” (cnbc, tl/ez)