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Germany regrets U.S. decision to sanction Russian vessel involved in Nord Stream 2

Published 01/18/2021, 12:28 PM
Updated 01/18/2021, 02:05 PM
© Reuters. FILE PHOTO: Nord Stream 2 land fall facility in Lubmin

© Reuters. FILE PHOTO: Nord Stream 2 land fall facility in Lubmin

By Michael Nienaber

BERLIN (Reuters) - The United States has informed Germany that it plans to impose sanctions on a Russian pipe-laying ship involved in construction of the Russian-led Nord Stream 2 gas pipeline from Russia to Germany, the German Economy Ministry said on Monday.

"We're taking note of the announcement with regret," an Economy Ministry spokesman in Berlin said.

German business daily Handelsblatt had earlier reported the U.S. sanctions would go into effect on Tuesday as part of the Countering America's Adversaries Through Sanctions Act (CAATSA).

It said the sanctions would be imposed on the Russian pipe-laying ship "Fortuna" and its owner, KVT-RUS.

Nord Stream 2, designed to double the capacity of the existing Nord Stream undersea gas pipeline, has become a point of contention between Moscow and Washington, with the United States seeking to cut Europe's reliance on Russian energy.

The group behind the pipeline suspended work in December 2019 due to the threat of sanctions from Washington, even though the project has been nearly completed.

Germany and European allies accuse Washington of using its newly introduced CAATSA sanctions regime to meddle in their foreign and energy policies.

According to Refinitiv ship-tracking data, Fortuna is still anchored in the Baltic Sea near Rostock in Northern Germany.

A spokesman for the U.S. embassy in Berlin told Handelsblatt that Washington would continue to take "all necessary and appropriate steps" to prevent Nord Stream 2.

"Although we do not comment on future sanctions measures, we will continue to exchange ideas with allies and partners on potential sanctions issues," the spokesman said.

The U.S. government is hoping that Germany will reconsider its position on Nord Stream 2, he added.

The U.S. State Department and the Treasury Department in Washington did not immediately respond to requests for comment.

A German government spokesman had told reporters earlier on Monday that Berlin's view on the pipeline remained unchanged, namely that Nord Stream 2 was a private sector project.

Russia's state-owned gas giant Gazprom (MCX:GAZP) is implementing the project jointly with Western partners Uniper, Wintershall, Engie, OMV and Shell (LON:RDSa).

U.S. President-Elect Joe Biden has opposed Nord Stream 2 in the past, but it is unclear if he could compromise on the issue after taking office on Wednesday.

Handelsblatt cited a Nord Stream 2 spokesman as saying that it was up to the European Union and governments in the countries involved to protect companies from any sanctions.

© Reuters. FILE PHOTO: Nord Stream 2 land fall facility in Lubmin

Gazprom declined to comment and Nord Stream 2 was not immediately available for comment. KVT-RUS could not be reached for comment.

 

Latest comments

I told you about the American.. They sanction everyone including their friends.. Here we got Mr red Riley who has nothing to say because Americans is evil.. So he is say blah blah blah.. Chanting away.. Goodness
Gary, is it really a good idea for a NATO member to be relying on Russia, of all countries, for its energy? Energy is the life blood of any economy or military. Please explain how making it possible for Russia to turn off the lights in Germany at any time is a good idea. They did it in Ukraine, why wouldn't they do it to Germany if they don't behave like Putin wants them to? Of course since your statement was i-dio.tic you are probably a Russian/Chinese bot so I'm probably wasting my time.
 Since when Europe teases US interest with sanctions? These steps are only to make market for more expensive dirty fracked US LNG. Dont be so naive, even if NS2 completed, Europe still will be ready to buy LNG from others... ofc not on a dirty price as US politicians want. Maybe the US should stop the 'weak europe we want' politics, and give a right hand instead of lurking around how to harm. Since when US does not make filthy businesses? Naive naive naive....
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