US announces sanctions against Russia's Nord Stream 2 pipeline

The United States is joining Germany in punishing the massive Russian project, following the actions of Vladimir Putin in Ukraine. Biden warns that stronger measures will be taken if Moscow insists on attacks on Ukrainian territory.US President Joe Biden announced on Wednesday (23/23) that his country will join Germany in imposing sanctions on the Russian Nord Stream 2 gas pipeline, which is to be transferred. Natural gas from Russia to Europe, bypassing countries such as Poland and Ukraine.

“I have directed my office to impose sanctions on Nord Stream 2 AG and its corporate board,” the US company said in a statement. This measure affects one of Russia’s main geostrategic initiatives, which is estimated to be worth about 11 billion dollars (55 billion Brazilian reais).

The move is yet another retaliation for Russian President Vladimir Putin’s actions toward Ukraine after Moscow recognized the separatist “republics” of Donetsk and Luhansk.

The Russian decision sparked strong reactions in the West, with a wave of sanctions imposed by the European Union, the United States, the United Kingdom and other countries.

The United States has long been among the biggest critics of the project, which they say will increase Europe’s dependence on energy supplies provided by Russia. Washington is denouncing Moscow for its refusal to pay transit fees owed to Ukraine, through which another Russian gas pipeline to Europe runs.

Biden said his government was working with Germany. These measures are another part of the first wave of sanctions in response to Russia’s actions in Ukraine. As I have already made clear, we will not hesitate to take further steps if Russia continues to escalate the situation.”

Nord Stream 2 AG is a company registered in Switzerland and its parent company is Russian energy giant Gazprom, which owns the entire pipeline but bears only half of the costs. The rest is financed by energy companies Shell, Austrian OMV, France’s Engie, Germany’s Uniper and Wintershall DEA.

Certificate suspended in Germany

Germany announced, on Tuesday, the suspension of the process of certification of gas pipelines, whose work was completed a few weeks ago.

German Federal Chancellor Olaf Schulz said the pipeline situation must be reassessed, and “all issues that concern us must be taken into account”.

The German leader called on the Ministry of Economy to make the necessary administrative arrangements so that the pipeline is not licensed for the time being. “Without this certification, Nord Stream 2 cannot be started,” Schulz explained.

In his statement, Biden thanked Schulz for his “close partnership and continued dedication to holding Russia to account.”

energy transmission

The White House has made clear that the sanctions will not affect former German Chancellor Gerhard Schroeder, who has chaired the Nord Stream 2 shareholder committee since 2005 and is a personal friend of Putin.

The pipeline under the Baltic Sea is about 1,200 kilometers long and aims to double the supply of Russian gas to Germany.

During its construction, Berlin argued that the project was necessary to aid the energy transition, moving away from fossil fuels and nuclear energy and toward sustainable sources.

About 40% of the gas that Europe uses comes from Russia – and Germany is one of the countries most dependent on Russian gas.

RC (Reuters, AFP, dpa)