U.S. Broadens Sanctions on Nord Stream 2 Pipeline

The U.S. is broadening the sanctions against service providers and those funding vessels involved in the construction of Nord Stream 2 in a fresh attempt to prevent the Russia-led gas pipeline project from completing, the U.S. Department of State said in new guidance.

The sanctions are a follow-up to U.S. sanctions on the Nord Stream 2 project from December 2019, which resulted in Western vessel and technology providers pulling out of the project.

Following the announcement of the sanctions last December, Switzerland-based offshore pipelay and subsea construction company Allseas immediately suspended Nord Stream 2 pipelay activities.

Now the United States is including in the sanctions companies “providing services or facilities for upgrades or installation of equipment for those vessels, or funding for upgrades or installation of equipment for those vessels,” according to the latest guidance.

The United States, several European countries—including the Baltic states and Poland—and the European Union (EU) have expressed concern about Russia using gas sales and its gas monopoly Gazprom as a political tool.

In July, the United States warned companies helping Russia to complete Nord Stream 2 that they should “get out now” or face consequences, as the Trump Administration steps up efforts to stop the construction of the controversial Russia-led pipeline in Europe.