Putin and Merkel seek common ground after US Iran deal pullout

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Two veteran leaders recently elected to their fourth terms in office will look to rebuild ties in Sochi on Friday, with the fallout from the uncertainty of the Trump presidency looming large.

Russian President Vladimir Putin will host Angela Merkel, the Russian-speaking German chancellor, in the Black Sea resort to discuss how to fix the Iran nuclear deal – and also mend relations which have cooled since the Russian intervention in Crimea in 2014.

The visit, the first bilateral meeting between the leaders since May 2017, follows trips to Moscow in the past week by German Foreign Minister Heiko Maas and German Economic Affairs Minister Peter Altmaier.

Russian President Vladimir Putin (L) and German Chancellor Angela Merkel (R) attend a joint press conference at the Black Sea resort of Sochi, Russia, May, 2, 2017. /VCG Photo

With the threat of tariffs on the EU and the fallout from the US withdrawal from the Iran straining ties between Europe and Washington, Merkel is thought to be keen to strengthen relations with Russia.

A German official told Bloomberg that rapprochement with Moscow was now a "core policy objective" for Berlin.

Iran deal hopes

The US withdrawal from the Iran nuclear deal has led to a whirlwind of diplomacy among the remaining signatories – Russia, Germany, China, France and Britain – in a bid to keep the deal alive.

It has also opened the door to closer relations between Europe and Russia, and provided Putin with an opening to show he can be a vital partner. "When opinions coincide, it already means that countries become a little bit closer at least,” Bloomberg cited Yuri Ushakov, a Kremlin foreign policy aide, as telling reporters in Moscow on Thursday.

Russian Foreign Minister Sergei Lavrov invites his Iranian counterpart Mohammad Javad Zarif to have a seat during their meeting in Moscow, Russia, May 14, 2018. /Reuters Photo

The Kremlin this week described the Iran agreement as "crucial for regional stability and for the stability of the entire world" and has positioned itself as a key broker over the past week. Iran's foreign minister Mohammad Javad Zarif was in Moscow on Monday after holding talks in Beijing at the weekend, and French President Emmanuel Macron is due in Saint Petersburg on May 24.

The Putin-Merkel meeting, at which the leaders are expected to look for ways to keep the Iran deal, follows unanimous support on Thursday from EU member states to honor the agreement.

The EU Commission on Thursday announced it would implement "blocking legislation" to counter US sanctions on companies working in Iran, meanwhile, putting Europe on course for another clash with Washington following threats over sanctions.

EU-US-Russia

The US pull-out – the latest of a series of multilateral agreements the Trump administration has withdrawn from – could have wide geopolitical ramifications, and puts Europe in an awkward spot.

European Council President Donald Tusk articulated the sentiments of many with a letter to EU leaders on Wednesday, writing: “Looking at the latest decisions of Donald Trump someone could even think: with friends like that who needs enemies.

"The EU should be grateful. Thanks to him we got rid of all illusions. We realized that if you need a helping hand, you will find one at the end of your arm.”

European Council President Donald Tusk addresses a news conference at the EU-Western Balkans Summit in Sofia, Bulgaria, May 17, 2018. /VCG Photo

European unity appears to be holding and the sentiments expressed by Tusk indicate that the EU doesn't currently regard Washington as a reliable partner.

Closer relations with Russia – on which both the EU and the US continue to impose sanctions – are a possibility that will alarm many Americans outside the White House.

Trump again criticized Germany on Thursday over its levels of defense spending in relation to NATO, meanwhile, calling on Berlin to "demonstrate leadership in the alliance by addressing its longstanding shortfall in defense contributions."

Nord Stream 2

Russia and Germany are keen to extend economic interests, which include the controversial 11 billion US dollar Nord Stream 2 pipeline -- which the US and some EU countries fiercely oppose.

The pipeline is designed to double the amount of Russian gas exported to Germany, but would hit Ukraine hard by bypassing the need to pay it transit fees – an issue Berlin has pledged to rectify.

A US official claimed on Thursday that the pipeline could be used to spy in the Baltic Sea, would increase Moscow's influence on Berlin, and warned it could lead to new sanctions.

Ukraine strains

The high-level cooperation between the countries on Nord Stream 2 and the Iran deal is likely to overshadow the tensions that have existed between the countries over recent years – but stark differences remain.

As recently as March, Germany expelled Russian diplomats over the poisoning of a former Russian spy in the UK. Berlin also supports the continuation of EU sanctions on Russia, and the countries are at odds over the conflict in eastern Ukraine.

This file photo taken on July 11, 2014 shows Ukrainian servicemen sitting atop armored personnel carriers near the eastern Ukrainian city of Slavyansk. /VCG Photo

Fighting is ongoing on the Russia-Ukraine border and Deutsche Welle reported that Merkel has repeatedly called on Putin to curb the activities of pro-Russian separatists. AFP reported on Friday that the two leaders will try to organize a four-way meeting with the presidents of France and Ukraine to advance a possible UN peacekeeping meeting.

Syria is also likely to be on the agenda, the day after Putin hosted President Bashar al-Assad at the Black Sea resort. Although Germany has not been active in the Middle Eastern country, choosing not to join strikes in response to alleged chemical weapons use in April, it has been critical of Russia's role.

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