The annual US defense policy bill includes sanctions against Russia’s most ambitious natural gas pipeline project, the Nord Stream 2, Reuters reported, citing two congressional aides. Under the compromise National Defense Authorization Act, companies facilitating the construction of Nord Stream 2, including ships that help lay pipes and move rock formations on the sea bed can be penalized. The sanctions also target insurers, secondary insurers, and certifiers of the project. The bill will need to be approved by the Congress and signed by President Trump before becoming law.
The $11 billion Nord Stream 2 natural project is led by Russia’s Gazprom and will double gas flows from Russia to Europe via the Baltic sea. It will also bypass Ukraine which has become a lucrative gas transit to Europe. Gazprom and Germany said the project is purely commercial to meet the growing demand for gas in Germany, which has been reducing its nuclear and coal power generation.
However, Washington believes that Nord Stream 2 will further strengthen Russia’s dominance in Europe’s energy market. The Trump administration also promotes LNG exports from the US to Europe to counterweight Russian influence. The latest sanctions round is aimed at preventing Russian pipe-laying vessel Akademik Cherskiy from completing the final portion of the project that stretches in Danish waters.
