Pompeo warns of new sanctions over Nord Stream 2, TurkStream
16 Jul 2020

The U.S. is moving toward sanctions against energy companies involved in Russian pipelines to Europe and Turkey, escalating a threat to punish allies for pursuing projects that the U.S. argues will only benefit Russia.

As Europe’s domestic gas supplies decline, the region is becoming more dependent on imported fuel. The almost 10 billion-euro ($11 billion) Nord Stream 2 project from Russia to Germany is being financed by companies including Royal Dutch Shell Plc, Germany’s Uniper SE and Wintershall AG and France’s Engie SA. Allseas Group SA is helping to expand the Turk Stream link.

“Get out now or risk the consequences,” Secretary of State Michael Pompeo said at the State Department on Wednesday.

Under Wednesday’s move, the administration updated its guidance for companies seeking to abide by the Countering America’s Adversaries Through Sanctions Act, or Caatsa, which is aimed at limiting business with Russia. The new guidance broadens the scope of the sanctions by making clear that more companies than previously thought could face sanctions for their work on the pipelines.

Russian President Vladimir Putin’s spokesman, Dmitry Peskov, called the U.S. plans a crude attempt to put pressure on European business. “It’s an attempt to force Europeans to buy more expensive gas under less attractive conditions,” Peskov told reporters Thursday, adding that the Kremlin viewed it as an example of unfair competition.

The U.S. contends the 1,200-kilometer (745-mile) pipeline owned by Moscow-based Gazprom PJSC will give Russia undue control over energy supplies to Europe, but allies including Germany say the pipeline will provide needed resources. TurkStream is set to carry Russian gas under the Black Sea to Turkey and supply several countries in southeastern Europe.

By Nick Wadhams and Lars Paulsson, Bloomberg, 15 July 2020

Read more at Bloomberg

RiskScreen: Eliminating Financial Crime with Smart Technology

Count this content towards your CPD minutes, by signing up to our CPD Wallet

FREE CPD Wallet