The United States Of America has approved a Bill to impose sanctions on companies working on Russia – Germany gas pipeline
The United States (U.S.) Senate, the upper chamber of the U.S. Congress, has passed the National Defence Authorisation Bill, to impose sanctions on companies working on Russia’s Nord Stream 2 project.
Nord Stream (formerly known as North Transgas and North European Gas Pipeline) is a system of offshore natural gas pipelines from Russia to Germany. It includes 2 lines running from Vyborg to Greifswald, forming original Nord Stream (Nord Stream 1), and two lines running from Ust-Luga to Greifswald, termed as Nord Stream 2.
The Nord stream 1 is fully operational. The Nord Stream 2 was laid in 2018–2020 and is expected to become operational in 2020. Nord Stream 2 is owned and will be operated by Nord Stream 2 AG, a wholly owned subsidiary of Gazprom.
The Bill has now been sent to White House, where the President of U.S – Donald Trump is expected to sign it. Trump Administration has always opposed the project saying that it would increase Russia’s hold in the Europe. The Bill targets companies based in Western Europe who are laying the pipeline. Dutch-Swiss company, Allseas Group, which is laying pipeline off the Danish island of Bornholm, could be hit.
Worth U.S. $ 11 billion, Nord Stream 1 and Nord Stream 2 have an annual capacity of 55 billion cubic metres. Both projects have been opposed by the U.S as well as several Central and Eastern European countries because of concerns that it would increase Russia’s influence in the region.
If the sanctions are imposed, the U.S. Secretary of State – Mike Pompeo, would have to issue a report within the 60 days, from the date of sanctions, on the vessels that are engaging in pipe-laying for the Nord Stream 2. If a company is listed in the reports, it would then be blacklisted by U.S. unless the sanctions are waived off by Trump. The sanctions are meant to stop Russia from completing the project.
Besides, Nord Stream 2 would allow Russia to bypass Poland and Ukraine to deliver gas under the Baltic Sea to Germany. The U.S. believes that Ukraine could lose billions of dollars in transit fees if it is built. The U.S. is mulling alternatives that can be offered to Germany.
The Minister of Foreign Affairs of Germany – Heiko Mass has rejected U.S. sanctions as “foreign interference.”
For the records, on January 31, 2018, Germany had granted the permit for construction and operation to Nord Stream 2 in German waters and landfall areas near Lubmin. The construction. In May 2018, construction started at the Greifswald end point. In January 2019, the U.S. Ambassador in Germany – Richard Grenell sent letters to companies involved in the construction of Nord Stream 2 urging them to stop working on the project or else U.S. will impose sanctions on them.
