Page 12 - FSUOGM Week 29

FSUOGM PIPELINES & TRANSPORT FSUOGM

Pompeo paves way for more

sanctions against Nord Stream 2

US US Secretary of State Mike Pompeo announced
on July 15 that Washington would remove an
The state department exemption protecting Russia’s Nord Stream 2
wants to remove an gas pipeline from US sanctions introduced in
exemption protecting 2017, just as another sanctions bill makes its way
Nord Stream 2 from through US Congress.
a 2017 sanctions The US strongly opposes Nord Stream 2,
package. which aims to pump an extra 55bn cubic metres
per year of Russian gas to northern Germany,
claiming it will allow Moscow to exert greater
political influence in Europe. But Russian offi-
cials say the US is simply protecting the interests
of its LNG exporters.
The US introduced a first wave of sanctions
against Nord Stream 2 in December under the months, raising doubts about how effective
Protecting Europe’s Energy Security Act, threat- further US sanctions will be. Russian President
ening to punish companies involved in its con- Vladimir Putin has said the pipeline could start
struction. This led to Swiss contractor Allseas flowing gas in early 2021.
quitting the project, bringing work to a halt with “Let me be clear: These aren’t commer-
just 6% of Nord Stream 2’s offshore section left cial projects,” Pompeo said. “They are the
to complete. Kremlin’s key tools to exploit and expand
A second bill is now awaiting approval from European dependence on Russian energy
both US houses, called the Protecting Europe’s supplies, tools that undermine Ukraine by
Energy Security Clarification Act, which would cutting off gas transiting that critical democ-
impose sanctions not only on companies racy, a tool that ultimately undermines
involved in pipelaying, but also those providing transatlantic security.”
underwriting services, insurance or reinsurance One of the central goals of Nord Stream 2 is
for the project. to allow Russia to reduce gas transit via Ukraine.
Back in 2017, the US also passed the Coun- The project was unveiled in 2015, a year after
tering America’s Adversaries Through Sanctions relations between Moscow and Kyiv collapsed
Act, which would have led to much harsher following Russia’s annexation of Crimea and the
financial penalties for those assisting the project. breakout of civil war in eastern Ukraine.
However, then-Secretary of State Rex Tillerson Russia’s foreign ministry responded to Pom-
exempted Nord Stream 2 and Russia’s now-com- peo’s words by repeating its argument that Wash-
plete pipeline to Turkey, TurkStream, as work on ington’s sanctions are simply a tool for “unfair
both had already started. competition” in supplying Europe’s gas.
In a conference on July 15, Tillerson’s suc- Both Germany and the EU have made it very
cessor Pompeo said his department’s guidelines clear that they strongly oppose US meddling
would be revised, clearing a path for the Trump with a European energy project. Measures have
administration to introduce measures against been discussed to protect sanctioned companies
Nord Stream 2 under the 2017 law. and possibly retaliate against US penalties.
“This action puts investment or other activ- “As elected representatives of the American
ities that are related to these Russian energy people, you undoubtedly and rightfully resist
export pipelines at risk of US sanctions,” Pompeo all attempts to interfere in the internal Affairs of
told reporters. “It’s a clear warning to companies Texas, Wisconsin or Pennsylvania," the chair-
aiding and abetting Russia’s malign influence man of the economic and energy committee of
that projects will not be tolerated. Get out now, Germany’s Bundestag, Klaus Ernst, said in a let-
or risk the consequences.” ter to US lawmakers last week. “Europe, in turn,
Russia has its own pipelaying vessels sta- expects that you will respect the decisions that
tioned off the German coast that are expected were taken democratically within the European
to complete Nord Stream 2 over the coming Union.” ™

P12 www. NEWSBASE .com Week 29 22•July•2020