US Imposes Sanctions On Company Building Russia’s Nord Stream 2 Gas Pipeline

In the wake of growing tensions in Europe, the United States on Wednesday imposed sanctions on the company in charge of building Russia’s Nord Stream 2 gas pipeline after Moscow recognized two breakaway regions in eastern Ukraine. This is in addition to a number of sanctions imposed by the US on Russia.

Nord Stream 2 AG is a well-known and registered Swiss firm whose parent company is the Russian state-owned gas giant Gazprom. This particular pipeline project has been designed to double the direct flow of Russian gas to Germany.

The sanctions target the Nord Stream 2 AG company and its corporate officers and adds to pressure on the Baltic Sea project that was designed to double the gas flow capacity from Russia to Germany. However, the White House has clarified that the sanctions would not affect Gerhard Schroeder.

Schroeder is a former German chancellor and a close friend of Putin’s who has headed the shareholders committee of Nord Stream since 2005. Germany on Tuesday halted the Nord Stream 2 AG pipeline, worth USD 11bn due to Russia’s actions towards Ukraine.

The United States and the European Union worry that the pipeline will increase Europe’s dependence on Russian energy supplies. They also fear it will deny transit fees to Ukraine, host to another Russian gas pipeline.

Ukraine President Volodymyr Zelenskyy last year opposed the completion of the Nord Stream 2 project, warning it could become a ‘dangerous geopolitical weapon’. Europe’s most divisive energy project, Nord Stream 2 has not begun operations pending certification by Germany and the European Union.