AGL 5.60 Decreased By ▼ -0.18 (-3.11%)
ANL 8.90 Increased By ▲ 0.02 (0.23%)
AVN 76.85 Decreased By ▼ -2.07 (-2.62%)
BOP 5.26 Decreased By ▼ -0.02 (-0.38%)
CNERGY 4.63 Decreased By ▼ -0.07 (-1.49%)
EFERT 81.27 Decreased By ▼ -0.33 (-0.4%)
EPCL 50.08 Decreased By ▼ -0.83 (-1.63%)
FCCL 13.16 Decreased By ▼ -0.22 (-1.64%)
FFL 5.69 Decreased By ▼ -0.03 (-0.52%)
FLYNG 7.07 Decreased By ▼ -0.08 (-1.12%)
FNEL 4.79 Decreased By ▼ -0.03 (-0.62%)
GGGL 8.80 Decreased By ▼ -0.10 (-1.12%)
GGL 14.55 Decreased By ▼ -1.33 (-8.38%)
HUMNL 5.69 Decreased By ▼ -0.08 (-1.39%)
KEL 2.63 Decreased By ▼ -0.03 (-1.13%)
LOTCHEM 28.60 Decreased By ▼ -0.45 (-1.55%)
MLCF 24.49 Decreased By ▼ -0.61 (-2.43%)
OGDC 72.43 Decreased By ▼ -0.02 (-0.03%)
PAEL 15.36 Increased By ▲ 0.01 (0.07%)
PIBTL 5.00 Decreased By ▼ -0.05 (-0.99%)
PRL 16.10 Decreased By ▼ -0.19 (-1.17%)
SILK 1.08 Decreased By ▼ -0.01 (-0.92%)
TELE 9.14 Decreased By ▼ -0.23 (-2.45%)
TPL 7.23 Decreased By ▼ -0.10 (-1.36%)
TPLP 18.61 Decreased By ▼ -0.34 (-1.79%)
TREET 21.68 Decreased By ▼ -0.32 (-1.45%)
TRG 136.71 Decreased By ▼ -4.44 (-3.15%)
UNITY 16.88 Decreased By ▼ -0.14 (-0.82%)
WAVES 9.86 Decreased By ▼ -0.04 (-0.4%)
WTL 1.41 No Change ▼ 0.00 (0%)
BR100 4,225 Decreased By -29.6 (-0.7%)
BR30 15,518 Decreased By -214.7 (-1.36%)
KSE100 42,150 Decreased By -243.4 (-0.57%)
KSE30 15,588 Decreased By -75.7 (-0.48%)
World

US tells European companies they face sanctions risk on Nord Stream 2 pipeline

  • On that date, US Secretary of State Mike Pompeo warned investors in Russia's Nord Stream 2 and Turkstream pipelines they could face sanctions under the Countering America's Adversaries Through Sanctions Act of 2017.
Published January 13, 2021
Follow us

WASHINGTON: The US State Department this month told European companies which it suspects are helping to build Russia's Nord Stream 2 gas pipeline that they face the risk of sanctions as the outgoing Trump administration prepares a final round of punitive measures against the project, two sources said on Tuesday.

"We are trying to inform companies of the risk and urge them to pull out before it's too late," a US government source said on condition of anonymity.

The US source said the State Department is expected to issue a report by Thursday or Friday on companies it believes are helping the Russia-to-Germany pipeline.

Companies that could be in the report include ones providing insurance, helping to lay the undersea pipeline, or verify the project's construction equipment, the source said.

The companies could be at risk of US sanctions under existing law if they do not stop work. Zurich Insurance Group could be listed in the report, the source said. The company did not immediately respond to a request for comment.

Nord Stream 2 did not immediately respond to a request for comment.

The $11 billion pipeline, one of Russia's most important projects in Europe, has sparked tensions between Washington and Moscow.

The Trump administration opposes Nord Stream 2, which would deprive Ukraine of lucrative transit fees, saying it would increase Russia's economic and political leverage over Europe. The administration has also pushed exports of US liquefied natural gas to Europe, a fuel that competes with pipelined gas from Russia.

The Kremlin says Nord Stream 2, led by state energy company Gazprom, is a commercial project. Germany, Europe's biggest economy, also says the pipeline is simply commercial. It needs gas as it shuts coal and nuclear plants on environmental and safety concerns.

US President-elect Joe Biden opposed the project when he was vice president under Barack Obama. It is uncertain whether he would be willing to compromise on the project after Jan. 20 when he takes over.

Gazprom halted Nord Stream 2 construction for a year after US sanctions in December 2019. But work has resumed as Gazprom hopes to complete the Nord Stream 2 pipeline under the Baltic Sea to double the existing line's capacity. The project is 90% completed with only a 62-mile (100-km) stretch in deep waters off Denmark left to complete.

Gazprom's Western partners in the project are Germany's Uniper, BASF's Wintershall Dea, Anglo-Dutch oil major Shell, Austria's OMV and Engie.

A US based industry source who has seen the State Department communications said European companies, including German ones, received the inquiries from the Trump administration over the past several months, dating back to October, about their activities relating to Nord Stream 2.

The State Department asked the companies in October if they were involved with Nord Stream 2 and whether any work continued after July 15, and the value of any services or support.

On that date, US Secretary of State Mike Pompeo warned investors in Russia's Nord Stream 2 and Turkstream pipelines they could face sanctions under the Countering America's Adversaries Through Sanctions Act of 2017.

On Jan. 1, the State Department reached out again with an urgent request, the industry source said, asking to set up a call that weekend with the Bureau of Energy Resources to discuss the details of the companies' wind down activities.

The State Department did not immediately respond to a request for comment.

Comments

Comments are closed.

US tells European companies they face sanctions risk on Nord Stream 2 pipeline

IK says will dissolve assemblies ‘very soon’

Provinces’ power sector schemes: Rs8.11bn approved by ECC

Effective Nov 2022: Agri consumers of Discos, KE have to pay Rs23.30/unit

PTI Sindh MPAs hand in their resignation

Dues against consumer billing collection: KE seeks MoF’s help for release of over Rs4.5bn collected by Pakistan Post

COAS urged to disassociate himself from Bajwa’s ‘controversial’ actions

Public limited companies: Conditions for launching REITs schemes laid down

Income tax arrears: Nov collection up Rs2.33bn to Rs8.98bn YoY

Centcom chief, COAS discuss security cooperation

Asset-backed securitization rules: SPVs allowed to offer debt securities