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NorthAmOil POLICY NorthAmOil
US slaps broader sanctions on
Russia’s Nord Stream 2 gas pipeline
US-EUROPE THE US Department of State (DoS) has range of sanctions authorities to halt construc-
expanded sanctions against Russia’s Nord tion of these pipelines,” the State Department
Stream 2 gas pipeline, casting further doubt on said.
the controversial project’s completion. Russia has its own pipelaying vessels on
The new sanctions will apply to any compa- standby in northern Europe to finish Nord
nies “providing services or facilities or upgrades Stream 2, but it is unclear whether they have the The broadening of
or installation of equipment” for vessels taking means to complete the task alone.
part in Nord Stream 2, as well as those funding The broadening of sanctions against the pro- sanctions against
such upgrades and installations, the DoS said on ject is likely to drive a further wedge between
October 20. the US and Germany, a firm supporter of Nord the project is
Companies will have 30 days to end their Stream 2. While Washington argues the pipeline
involvement in the project before getting black- is a threat to EU energy and political independ- likely to drive a
listed under the Protecting Europe’s Energy ence, Berlin has said it is commercial enterprise further wedge
Security Act (PEESA) of 2019. Previously the that will increase Europe’s access to cheap gas.
act only applied to those providing the vessels In an interview with German media on Octo- between the US
themselves. ber 17, German Foreign Minister Heiko Maas
PEESA came into force in December, forcing slammed the US for interfering. and Germany.
Swiss-based pipelayer Allseas to withdraw from “We decide our energy policy and our energy
Nord Stream 2 and causing work on the pipeline supplies here in Europe,” he said. “We don’t criti-
to grind to a halt with just 6% of its offshore sec- cise the US for more than doubling its oil imports
tion left to complete. In other words, there are from Russia in the past year. The US exercises its
only 150 km of pipeline that remain to be laid, all right to an independent energy policy. So do we.”
in Danish waters. Germany’s government had previously
The sanctions also apply to Russia’s Turk- said Nord Stream 2’s future might be on the
Stream pipeline in the Black Sea, even though line if Russia did not provide answers on the
that project was completed at the start of the year. attempted assassination of opposition leader
“The Department of State and the Depart- Alexei Navalny. But it has since stepped back
ment of the Treasury are prepared to use the full from this position.
Week 42 22•October•2020 www. NEWSBASE .com P15