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The logo of the Nord Stream 2 gas pipeline project is seen on a pipe at the Chelyabinsk pipe rolling plant in Chelyabinsk, Russia
The gas pipeline between Germany and Russia has been completed — but German officials have blocked its certification processImage: Maxim Shemetov/REUTERS
PoliticsUnited States of America

US announces more sanctions over Nord Stream 2

November 22, 2021

The penalties do not target the main company finishing the project but rather a Russian-linked shipping company and vessel. The US fears the project could give Russia added influence in Europe.


The United States on Monday imposed fresh sanctions on a company involved in the Nord Stream 2 gas pipeline between Russia and Germany.

US Secretary of State Antony Blinken said the latest sanctions would be directed at a shipping company called Transadria Ltd and its vessel the Marlin.

What do we know about these sanctions?

Despite pressure from the Republican party, the Biden adminstration has not hit the main company that is finishing the pipeline with sanctions, instead insisting on the need to work with key ally Germany.

The sanctions against Transadria come as part of a required report to Congress to take action against the pipeline.

The US, Ukraine and several EU states have voiced concern that Nord Stream 2 will give Russia increased influence in regional politics and pose a risk to Europe's energy security.

"Even as the administration continues to oppose the Nord Stream 2 pipeline, including via our sanctions, we continue to work with Germany and other allies and partners to reduce the risks posed by the pipeline," Blinken said in Monday's statement.

How does Nord Stream 2 affect Ukraine?

Ukraine has received major royalties from transporting natural gas produced in Russia to Germany and central Europe. It now fears significant revenue losses.

The Biden administration and Germany reached a deal in July that includes support for Ukraine and the threat of sanctions if Russia is deemed to "weaponize" fuel deliveries.

Germany agreed to make investments to help Ukraine transition to clean energy. It will also actively ensure Moscow and Kyiv extend a gas transit agreement.

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Why has the Nord Stream 2 not opened yet?

The pipeline under the Baltic Sea was completed in September.


Germany's network regulator last week suspended plans to open the pipeline after ruling that the operator within Germany does not comply with conditions set by German law.

The Swiss-based Nord Stream 2 AG is planning to open a subsidiary in Germany but only to cover the German stretch of the pipeline.

Germany's Federal Network Agency said the project would continue to remain stalled until the Swiss company's "main assets and human resources have been transferred to the subsidiary."

The administrative delay could further stall the start until mid-2022, experts believe.

jc/rt (AFP, Reuters, dpa)

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