Page 10 - NorthAmOil Week 18 2021

NorthAmOil POLICY NorthAmOil

Germany, US remain at

odds over Nord Stream 2

US-GERMANY GERMANY and the US remain at odds over the remaining section of the pipeline. The project
Nord Stream 2 gas pipeline project, following was around 95% complete as two Russian ships
efforts by the administration of US President Joe resumed laying the final segment of the pipeline
Biden to find common ground between the two in Danish waters recently.
countries. This segment had originally been due to be
US Secretary of State Anthony Blinken and laid by Allseas, which backed out of the project
German Foreign Minister Heiko Maas met on in December 2019 amid sanctions imposed by
the sidelines of the Group of Seven (G7) Foreign Biden’s predecessor, former US President Don-
Ministers’ Summit in London on May 4. Follow- ald Trump. These prevented foreign contractors
ing the meeting, they reiterated their unchanged from working on the remaining section of pipe-
views on Nord Stream 2. line, which Russian companies are now trying
The difference of opinion centres on the US’ to complete. An attempt is
concern over the pipeline giving Russia, which And while the US has not imposed new
is behind the project, too much influence over sanctions to derail the remaining construction underway in
European energy supplies. Indeed, Blinken said work, Blinken warned this week that the US
the US continues to strongly oppose the project would respond if Russia were to act “recklessly US Congress to
because Washington sees it as undermining or aggressively”.
European energy security. Meanwhile, an attempt is underway in US make the Biden
Germany, for its part, continues to strongly Congress to make the Biden administration administration
support Nord Stream 2, which will carry 55bn take a tougher stance on Nord Stream 2. In late
cubic metres of gas along a subsea route to its April, the US Senate Foreign Relations Commit- take a tougher
coast from Russia. This comes despite various tee advanced a bill to deliver aid to Ukraine in its
opponents, including the US, as well certain struggle with Russia and exert pressure on com- stance on Nord
European countries, urging Berlin to drop its panies helping to build the pipeline. However,
support for the project. (See EurOil Week 17) the Ukraine Security Partnership Act would Stream 2.
Maas said this week that the disagreement need to be passed in the full Senate and House
with the US over Nord Stream 2 constituted only of Representatives and signed by Biden in order
a “small part” of bilateral relations between the to become law.
two countries. “Apart from this problem, I do not Nord Stream 2’s start-up would result in Rus-
see any at the moment that I would even begin to sian gas bypassing Ukraine on its way to Europe,
describe as serious,” he said. thus depriving the country of significant revenue
However, despite US opposition to Nord from transit fees. However, the bill would need
Stream 2 it has not yet imposed new sanctions to move quickly if it is to become law before the
on any of the players involved in completing the remaining section of the pipeline is completed.™

P10 www. NEWSBASE .com Week 18 06•May•2021