The United States Treasury has sanctioned the Nord Stream 2 project which eventually could provide large quantities of Russian natural gas to the German Republic in the European Union. The penalties were enacted upon the signing of the National Defense Authorization Act (NDAA) by U.S. President Donald Trump on Friday. The Trump administration believes German dependence on Russian energy is a national security issue. Germany, which pays next to nothing for its own defense, doesn’t care.
The company constructing the pipeline halted building the project temporarily.
“Allseas has suspended pipelay activities until legal, technical, and environmental clarifications are received,” the company noted, reported Russian state news agency TASS.
“Completion of the project is important for the security of energy supplies to Europe. We, together with the companies participating in the project, will work to complete it as soon as possible,” the company added.
Switzerland-based Allseas, pipe-laying company for the Nord Stream 2 pipeline, reported earlier suspension of pipelay activities. “In anticipation of the enactment of the National Defense Authorization Act (NDAA), Allseas has suspended its Nord Stream 2 pipelay activities. Allseas will proceed, consistent with the legislation’s wind down provision and expect guidance comprising of the necessary regulatory, technical and environmental clarifications from the relevant US authority,” the company said.
Such actions [possible US sanctions] are a direct violation of international law, they present an ideal example of unfair competition and spread their artificial dominance in European markets, imposing more expensive and uncompetitive products on European consumers – more expensive natural gas,” declared Kremlin spokesman Dmitry Peskov.
The U.S. has little leverage to prevent the Nord Stream 2 gas pipeline project between Russia and Germany from being completed, two administration officials said, acknowledging the failure of a years-long effort to head off what officials believe is a threat to European security, wrote Bloomberg News.