Washington After the federal government suspended the approval process for the German-Russian gas pipeline Nord Stream 2, the USA are now introducing sanctions against the operating company and its top managers. This was announced by US President Joe Biden in a written statement on Wednesday.
Biden had previously refrained from taking such a step out of consideration for Germany. The American decision is another major blow to the pipeline.
In view of the Russian escalation in the Ukraine conflict, the federal government put the project on hold on Tuesday and stopped the approval process for Nord Stream 2 for the time being. The government in Berlin was reacting to Moscow’s recognition of the separatist regions of Donetsk and Luhansk in eastern Ukraine.
Overall, the West announced a whole series of sanctions against Russia because of President Vladimir Putin’s actions. This also includes punitive measures by the USA.
Top jobs of the day
Find the best jobs now and
be notified by email.
Biden said the Nord Stream 2 decision was another part of that first tranche of sanctions. The USA had coordinated closely with the federal government on the issue.
The operating company of the pipeline, Nord Stream 2 AG, belongs to the Russian state-owned company Gazprom. The pipeline was built to bring gas from Russia to Germany bypassing Ukraine. The line has been completed but is not yet operational. With the U-turn by the federal government, an operating license is probably not in sight for a long time.
Nord Stream 2 caused trouble between the US and Germany
Biden has long been opposed to Nord Stream 2. Nevertheless, last May the Democrat issued exemptions that spared Swiss-based Nord Stream 2 AG and its German CEO, Matthias Warnig, from US sanctions.
This waiver of sanctions was expressly made out of consideration for Germany as an ally. At the time, Biden also stated that the United States would no longer be able to prevent the pipeline from being completed.
The issue of Nord Stream 2 had long caused resentment and anger between Germany and the USA. In order to defuse the dispute, Germany pledged greater support to Ukraine in a joint statement with the United States last July.
In view of the Ukraine crisis, the situation has changed fundamentally once again. Since the federal government has now turned away from Nord Stream 2 of its own accord, Biden no longer has to take Berlin into account. In his statement, the US President emphasized the recent close coordination with Germany on the subject.
Apparently the parent company in Switzerland and top management are affected by the sanctions. According to media information from the White House, former Chancellor Gerhard Schröder (SPD), who chairs the Supervisory Board of Nord Stream 2 AG, should not be affected by the sanctions.
Biden thanks Scholz for his cooperation
Joe Biden thanked Chancellor Olaf Scholz (SPD) “for his close partnership and continued commitment to holding Russia accountable for its actions.”
In the US, there has long been strong opposition to Nord Stream 2, from both Republicans and Democrats. Critics have argued that the pipeline is primarily a geopolitical project by Russia. Putin’s goal is to decouple Ukraine from Europe and make Europe even more dependent on Russian gas.
In the past few months, Republicans have tried unsuccessfully several times in Congress to tighten sanctions laws and thus deny Biden the opportunity to authorize exemptions from US sanctions on Nord Stream 2 for reasons of national security. Praise for Biden’s decision came from their ranks on Wednesday.
More: Small-scale tactics instead of a big hit: The EU sanctions hardly harm Russia