The Biden administration is weighing additional sanctions to block construction of the nearly completed Nord Stream 2 pipeline from Russia to Germany, potentially including the project’s parent company Nord Stream 2 AG, according to three people familiar with the matter.
The sanctions could come in the form of an interim report that may also single out an insurance company that has been working with the vessels laying the pipeline in the Baltic Sea as well as other companies providing support vessels and materials to the project, according to the people, who asked not to be identified because of the sensitive nature of the deliberations.
U.S. lawmakers from both parties have been pressing the Biden administration to take stronger action to stop Gazprom PJSC’s project after a congressionally-mandated report released last month named only one vessel — the Russian-flagged Fortuna — as subject to sanctions.
There’s concern in the U.S. and some European countries that the pipeline, which is almost complete, could increase the Kremlin’s leverage over Germany and other North Atlantic Treaty Organization allies.
A spokeswoman for Nord Stream 2 AG said the company couldn’t comment on political debates but that the commissioning of the pipeline is “in the interest of Europe’s energy security, European consumers” and the European Union’s “economic competitiveness.”
“The implementation of Nord Stream 2 is based on construction permits from authorities in four EU countries and Russia in compliance with legal requirements from national legislation, EU law and international conventions,” Irina Vasilyeva said in an emailed statement.
The Russian Embassy in Washington didn’t immediately respond to an emailed query on Thursday evening.
The Treasury Department didn’t immediately respond to a request for comment. The White House pointed to a statement from Secretary of State Antony Blinken that said the administration is closely tracking efforts to complete the pipeline as well as the companies involved in the project.
Source: Bloomberg