US warns sanctions still an option against Nord Stream 2

Tuesday, November 13, 2018

The United States could yet impose new sanctions to try to block construction of the Russian Nord Stream 2 gas pipeline across the Baltic Sea to the European Union, the U.S. ambassador to the EU said on Tuesday.

Asked if Donald Trump could take further measures to thwart a project which the president has said would leave EU countries even more beholden to Moscow for their energy, Gordon Sondland said: "We have not deployed the full set of tools yet that could significantly undermine if not outright stop the project."

Addressing an audience at the European Policy Centre think-tank in Brussels, Sondland added, "We're hoping that the opposition to the project works organically, because the EU and its member countries agree that dependence on Russian energy is not a good long-term geopolitical decision.

"If that philosophy is not adopted and Nord Stream continues, then the president has many, many other tools at his disposal -- I'm not going to go through the litany -- to try and curb and stop the project."

In August, Trump signed new sanctions on Russia into law that the pipeline's promoter, Gazprom, said could hold up some of its projects. For now, construction is continuing with the participation of some major EU companies, despite opposition from many EU states and from the EU executive.

Germany, the pipeline's destination, refuses to join EU opposition, describing it as a private enterprise.

Last week, on a visit to Poland which is a vocal critic of Nord Stream 2, U.S. Energy Secretary Rick Perry said Trump was maintaining the option of imposing sanctions.

Washington has not detailed potential actions but one way in which the United States could undermine the project would be by penalizing big multinational firms working on it.

Sondland stressed that U.S. opposition was not based on hopes of exporting more U.S. gas to Europe but on concern that Russia could increase its leverage on key allies in the U.S.-led NATO alliance through its control of their energy supplies.

"We don't want to see someone's gas turned off in the middle of the winter when there is a political crisis," he said.

"When Europe is vulnerable, the United States is vulnerable and we don't want to put ourselves in that position."

Gazprom is the sole shareholder in Nord Stream 2, shouldering half of the 9.5 billion euro ($10.7 billion) construction cost. Gazprom's Western partners are Germany's Uniper and Wintershall, Anglo-Dutch group Royal Dutch Shell, France's Engie and Austria's OMV.


($1 = 0.8888 euros)

(Reporting by Alastair Macdonald; Editing by Adrian Croft)

Categories: Legal LNG Government Update Pipelines Russia Europe Gas Natural Gas Government

Related Stories

SBM Offshore’s Jaguar FPSO Enters Drydock in Singapore (Video)

Santos and QatarEnergy Agree Mid-Term LNG Supply

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

UK Firm Secures Exploration Extension for Two Blocks off Vietnam

CDWE Wraps Up Pin Pile Installation Job for Taiwanese Offshore Wind Farm

Azeri SOCAR Plans New Agreements with Oil and Gas Majors

Scarborough FPU's Topsides and Hull Come Together in Major Engineering Feat (Video)

EnQuest Bags Two Production Sharing Contracts off Indonesia

VARD Snags $125M Shipbuilding Deal for Subsea Construction Vessel

Op-Ed: Kazakhstan’s National O&G Firm Positioning Itself as Global Energy Player

Current News

SBM Offshore’s Jaguar FPSO Enters Drydock in Singapore (Video)

EnQuest Picks Up Offshore Oil and Gas Block in Brunei

CNOOC Finds Oil and Gas in South China Sea

Seatrium Makes First Turnkey FPSO Delivery to Petrobras

KBR-SOCAR Joint Venture Secures Work for BP in Azerbaijan

Baker Hughes, Petronas Team Up for Asia-Pacific Energy Resilience

EnQuest Acquires Harbour Energy’s Vietnamese Assets

Woodside Finds South Korean Partners to Advance LNG Value Chain

Valeura Makes Progress with Multi-Well Drilling Campaign in Gulf of Thailand

Santos and QatarEnergy Agree Mid-Term LNG Supply

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com