US Congress sanctions companies and governments working on the Nord Stream 2 gas pipeline from Russia to Germany

(December 18, 2019) The US Congress has passed sanctions on companies and governments that are working on the Nord Stream 2 pipeline that will provide Russian gas to Germany under the Baltic sea. Washington is trying to halt completion of the $10.5 billion pipeline.

Sanctions may be too late

A recent article notes: "The U.S. Senate has approved a defense bill that will see sanctions imposed on companies working on Russia’s massive flagship gas pipeline project to Germany — but the sanctions might not have much effect given that the Nord Stream 2 pipeline is almost complete.

Denmark had delayed project

On October 30th Denmark gave permission to construct the 147 kilometers of the project that pass through Denmark's territorial wat Thers no doubt frustrating US efforts to stop the project. The project will run along the seabed southeast of the Danish island of Bornholm.

The sanctions

The sanction provision are part of a large spending package that passed the US Congress with a large majority last week and is due to be signed by President Trump some time this week. After the provisions are signed into law, the Trump administration has 60 days in which to identify companies and individuals to Nord Stream 2.

Individuals sanctioned could have their US visas revoked and property blocked. Those sanctioned have 30 days to wind up operations on the project.

Allseas based in Switzerland is a likely target as it is working on sections not yet completed.

US wants to prevent Russian influence in EU

US officials believe that the pipeline will increase the EU's reliance on Russian energy and increase Russian influence in the EU. They claim it will put billions of dollars in Russian coffers. The US would like to see Germany rely on more expensive gas from the US which would put even more billions of dollars in US coffers.

German reaction

Heiko Maas tweeted that EU energy policy was decided in Europe and not the US. He said on German TV criticizing the sanctions:"We think this is unacceptable, because it is ultimately a move to influence autonomous decisions that are made in Europe."

The German-Russian Chamber of Commerce also had a negative reaction not surprisingly. The Chamber claimed that the pipeline was essential for European energy security and called for retaliatory sanctions on the US. The Chamber does not appreciate the US position that EU energy security should not depend upon Russia but the US.

Andreas Nick a member of the German Bundestag claimed to a German newspaper that US sanctions over Nord Stream 2 would unite Germans in supporting the project. Nick said: "It's an issue of national sovereignty, and it is potentially a liability for trans-Atlantic relations."

Previously published in the Digital Journal