Page 7 - FSUOGM Week 32

FSUOGM COMMENTARY FSUOGM

Sanctions pressure legal notice,” demanding that the port operator
The US insists it opposes Nord Stream 2 because ‘cease activities” supporting Nord Stream 2’s
it will increase Europe’s dependency on Rus- construction or face “potentially fatal measures”
sian energy and provide Moscow with a tool that would cut the port’s commercial and finan-
for political leverage in the EU. But Russia says cial ties with the US.
Washington is simply protecting the interests German businesses are lobbying for Berlin to
of its US LNG exporters, which have greatly introduce measures that would protect compa-
expanded their market share in Europe over the nies from US punitive action, and the European
past year. Commission is working on legislation along
A bipartisan bill named the Protecting similar lines.
Europe’s Energy Security Clarification Act Faced with this firm opposition, sanctions
(PEESCA) was introduced to the US Senate in may prove ineffectual, serving only to sour
early June that would tighten existing sanctions US-European ties.
on those assisting with Nord Stream 2’s con-
struction. But the legislation must first clear both Russian plans
Houses of Congress and then get signed by US Russia has not disclosed when or exactly how
President Donald Trump in order to become law. it intends to complete Nord Stream 2, likely
Meanwhile, US Secretary of State Mike Pom- through fear of providing the US with greater
peo said on July 15 that his department would means to obstruct the project. But as NewsBase
remove an exemption protecting Nord Stream has reported in the past, it is understood that
2 from another, 2017 sanctions law, the Coun- the plan had been to deploy both Cherskiy and
tering America’s Adversaries Through Sanctions Fortuna.
Act. But again, Trump’s administration will need Cherskiy is equipped with a dynamic posi-
to decide which measures to impose on the pipe- tion system (DPS) required to work in Danish
line project. waters, where the remainder of Nord Stream 2
US intentions have been roundly denounced will be built, but it lacks a crane big enough for
by Germany, one of the biggest supporters of its 48-inch (1,215-mm) pipes. Fortuna, on the
Nord Stream 2. other hand, does not have DPS but has a large
German Minister of State Niels Annen said enough crane. Both ships would therefore need
on August 7 that Germany “firmly rejected” the to be coupled, but if Cherskiy’s DPS does not
proposed sanctions against Mukran, describing work in this situation, the vessels would need to
the tone and content of the letter as “completely be anchored.
outrageous.” Gazprom secured a revised permit from
“Threatening a close friend and ally with Danish regulators to use anchored vessels in
sanctions, and using that kind of language, will early July. The deadline for appeals against the
not work,” Annen told German public broad- permit expired on August 3, meaning the path is
caster ZDF. “European energy policy will be now clear for the Russian firm to resume work.
decided in Brussels, and not in Washington DC.” As of press time, though, Cherskiy and Fortuna
The US Senators said the letter was a “formal have not moved position. ™

Week 32 12•August•2020 www. NEWSBASE .com P7