Page 10 - FSUOGM Week 12 2021

FSUOGM POLICY FSUOGM

US said to plan another sanction

blow to Nord Stream 2

US THE administration of US President Joe Biden "The sanctions legislation Congress passed in
is weighing additional sanctions to block con- 2019 and expanded in 2020 has significant sup-
VTBC has maintained struction of the nearly completed Nord Stream port from a bipartisan congressional majority,"
its baseline expectation 2 pipeline from Russia to Germany, potentially the US Secretary of State Antony Blinken said in
that the pipeline will be including the project’s parent company Nord the statement on March 18.
launched in mid-2022. Stream 2 AG, Bloomberg wrote on March 18 "The Biden administration is committed to
citing unnamed sources familiar with the matter. complying with that legislation. The department
As reported by bne IntelliNews, the construc- reiterates its warning that any entity involved in
tion of trouble-stricken Nord Stream 2 pipeline the Nord Stream 2 pipeline risks US sanctions
project is due to resume off Denmark later this and should immediately abandon work on the
month, the Danish Energy Agency has said, pipeline," he added, as cited by Bloomberg.
although the work could drag for most of the "This might represent yet another hurdle to
year. completing the Nord Stream 2 pipeline, and so
Previous reports suggested that Germany could be negative for sentiment on Gazprom,"
was seeking to make a deal with the US on the VTB Capital (VTBC) commented on March 19.
completion of the pipeline that has been under The pipeline is nearing physical completion
consistent sanction pressure. But, as followed (Denmark earlier commented that the project
by bne IntelliNews, US-Russia relations seem to could be finished in 3Q21), and the majority of
have rapidly deteriorated under Biden. the capex represents sunk costs, VTBC analysts
Reportedly, new sanctions against Nord remind.
Stream could come in the form of an interim At the moment VTBC is not changing the
report that may target insurers of the vessels lay- baseline expectations on the launch of Nord
ing the pipeline in the Baltic Sea as well as other Stream 2 pipeline in mid-2022 (with the full-
companies providing support vessels and mate- scale launch only in 2023 and some $1bn saving
rials to the project. on transport expenses). ™

P10 www. NEWSBASE .com Week 12 24•March•2021