Page 13 - EurOil Week 42

EurOil PIPELINES & TRANSPORT EurOil

US slaps broader sanctions on Russia's

Nord Stream 2 gas pipeline

US THE US State Department has expanded sanc- range of sanctions authorities to halt construc-
tions against Russia’s Nord Stream 2 gas pipeline, tion of these pipelines,” the State Department
Companies will have casting further doubt on the controversial pro- said.
30 days to end their ject’s completion. Russia has its own pipelaying vessels on
involvement in the The new sanctions will apply to any compa- standby in northern Europe to finish Nord
project. nies “providing services or facilities or upgrades Stream 2, but it is unclear whether they have the
or installation of equipment” for vessels taking means to complete the task alone.
part in Nord Stream 2, as well as those fund- The broadening of sanctions against the pro-
ing such upgrades and installations, the State ject is likely to drive a further wedge between
Department said on October 20. the US and Germany, a firm supporter of Nord
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-
listed under the Protecting Europe’s Energy ence, Berlin has said it is commercial enterprise
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-
themselves. ber 17, German Foreign Minister Heiko Maas
PEESA came into force in December, forcing slammed the US for interfering.
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
to grind to a halt with just 6% of its offshore sec- criticise the US for more than doubling its oil
tion left to complete. In other words, there are imports from Russia in the past year. The US
only 150 km of pipeline remains to be laid, all in exercises its right to an independent energy pol-
Danish waters. icy. So do we.”
The sanctions also apply to Russia’s Turk- Germany’s government previously said Nord
Stream pipeline in the Black Sea, even though Stream 2’s future may be on the line if Russia did
that project was completed at the start of the year. not provide answers on the attempted assassina-
“The Department of State and the Depart- tion of opposition leader Alexei Navalny. But it
ment of the Treasury are prepared to use the full has since stepped back from this position. ™

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