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US threatens to sanction Nord Stream 2

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Energy Global,


Asked if the US might impose punitive measures against Nord Stream 2 and other projects, Energy Secretary Rick Perry answered “yes,” during a joint news conference with his Russian counterpart Alexander Novak on Thursday in Moscow, according to Bloomberg.

“Minister Novak and I both agree that getting to that point of sanctions is not where we want to go,” he said.

Perry urged Russia to be a “responsible supplier” and to stop using its resources for “influence and disruption,” adding that the US opposes the gas link because it would concentrate two-thirds of Russian exports of the fuel to the European Union in a single choke point. Novak said that Russia was concerned if the US sanctions a “competitive” gas pipeline, reported Bloomberg.

Nord Stream 2 would double Russia’s current capacity to deliver natural gas directly to Germany under the Baltic Sea and circumvent Ukraine. The project would be a major supply route to the EU and has been a sore point between the US and its allies.

President Trump last year signed a law giving him the right to sanction companies involved in Nord Stream 2. Royal Dutch Shell Plc, BASF SE’s Wintershall unit, Uniper SE, OMV AG and Engie SA have agreed to provide Russia’s Gazprom PJSC with financing for the €9.5 billion (US$11 billion) pipeline and could be at risk of penalties.

Read the article online at: https://www.energyglobal.com/pipelines/business-news/18092018/us-threatens-to-sanction-nord-stream-2/

 

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