Page 14 - NorthAmOil Week 29

NorthAmOil POLICY NorthAmOil

Pompeo paves way

for more sanctions

against Nord Stream 2

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

P14 www. NEWSBASE .com Week 29 23•July•2020