New sanctions may be imposed against Nord Stream 2


Sanctions Provisions Introduced into Defense Policy Bill

The annual US defense policy bill includes provisions for sanctions against the construction of the Nord Stream 2 gas pipeline, two congressional aides said Wednesday..

The sanctions under the Senate-House of Representatives compromise bill will affect companies assisting construction, including ships, as well as companies providing insurance or secondary insurance for construction and pipeline certification in Denmark.

The bill will become law only after it is passed by both houses of Congress and signed by the president..

The Nord Stream 2 project, led by the Russian state energy company Gazprom, will double the capacity of a previously laid pipeline that carries gas to Europe via Germany.

Gazprom and Germany insist that the project is purely commercial in nature. Gas demand in Germany is growing as it reduces dependence on nuclear and coal energy.

Trump administration and bipartisan lawmakers believe pipeline construction will strengthen Russian President Vladimir Putin’s economic and political influence in Europe.New sanctions may be imposed against Nord Stream 2 The Trump Administration Also Supports Increased Liquefied Natural Gas Exports To Europe.

Sanctions supporters hope these measures will prevent Gazprom from using the Russian pipe-lay vessel Akademik Chersky to complete the last 160 km section of the pipeline in Danish waters..

The deal, first reported by Bloomberg, includes language from an earlier bill pioneered by Democrat Senator Jean Shaheen and Republican Senator Ted Cruz..

Jens Müller, a spokesman for the operator of the project, said the company has not yet assessed the details of the bill, but expects Cruz and Shaahin’s initiative to directly or indirectly affect about 120 companies from more than 12 European countries..

“It is up to governments and the European Commission to protect European companies from illegal extraterritorial sanctions,” he said..

The bill also includes a proposal by Congressman Eliot Engel to notify allies before imposing sanctions. Engel, who chairs the House Foreign Affairs Committee, opposes Nord Stream 2, but warns that sanctions could hit European companies harder than Russia..

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