The US Department of State has tightened sanctions on the Russian-backed Baltic pipeline, Nord Stream 2, in a further attempt to hinder its completion.
Credited: © Nord Stream 2 / Axel Schmidt.
The pipeline has caused strained relationships between the US and the EU since building commenced in 2018.
The Trump administration began to ramp up sanctions against the pipeline back in July in a bid to prevent its completion several months after the US drafted a bill to put sanctions on companies supplying or aiding in the pipeline's construction in December 2019.
This led to concerns the project, which is nearing completion with a little over 100km of pipeline left to be laid, would never be completed after a quote from German Foreign Minister Heiko Maas made its way into a German local paper early last month.
Since this incident, the German minister has gone on record in "assuming" the project will be completed.
"The question is when," Maas said in an interview with German media outlet RND.
The US and Russia are going back and forth in a trade war over the pipeline, which has become particularly heated since the poisoning of Alexei Navalny in August.
This led to calls that German officials, who overwhelmingly support the Nord Stream 2 project, should distance themselves from the Russians in protest over its attempts to get rid of its Opposition leader, which they believe to be contrary to the democratic values of the country.
If completed, Nord Stream 2 would double the capacity of the gas corridor in the Baltic Sea, and would also make Germany less dependent on US energy.
The State Department laid out its plans on Tuesday to increase the measures put in place last year, saying sanctions would now apply to companies providing services, facilities or funding for "upgrades or installation of equipment" for vessels that will work on Nord Stream 2.
US officials worry the pipeline would make the EU too reliant on Russia for its energy supply, seeing it as intentional sabotage of the US-EU relations by Moscow.
Francis Fannon, assistant secretary of state, said in a statement that Tuesday's guidance "was an appropriate response especially considering there's more work to do."
He added: “We want to make sure that all parties have clarity that they could fall under our sanctions.”
The sanctions put in place last year against companies helping to lay the pipeline caused the main ship involved in the project to quit. The primary purpose of these new measures is that Washington believes a replacement has been selected and wish to discourage it from taking part.
The new Russian vessel, the Akademik Cherskiy, lacks much of the equipment needed to lay the pipeline, so it has been docked in the port of Kaliningrad to be refitted.
A research team associated with the German parliament, the Bundestag, has already found that the US sanctions do not breach international law.
They found the US acted in the interests of its national security, and to protect the negative impact the pipeline could have on its economy.
They suggested the German government should seek a diplomatic solution to the conflict.
A spokesman for Nord Stream 2 said: “We would like to underline that Nord Stream 2 is a fully permitted project, constructed in accordance with applicable national and international legislation. We are forced to look for new solutions."
More sanctions are expected to included in the defence budget later this year.
The guidance permits the State and Treasury departments to use "the full range of sanctions authorities to halt construction.
Current estimates predict the pipeline will be up-and-running by mid-2021.
Back to Homepage
Back to Energy & Utilities