Wednesday, May 19, 2021
No sanctions issued
Biden under pressure because of Nord Stream 2
US President Biden has called Nord Stream 2 “a bad deal for Europe”. Nevertheless, he is now faced with allegations that he did not want to prevent the Baltic Sea pipeline at all. It has long been a central point of contention in German-American relations.
The government of US President Joe Biden is coming under pressure in connection with the controversial German-Russian Baltic Sea pipeline Nord Stream 2. Background is a Report from the US news site “Axios” from Tuesday, according to which the US government wants to forego the application of sanctions against Nord Stream 2 AG in Zug, Switzerland, and its German managing director Matthias Warnig. Republicans in the US Congress reacted indignantly.
The top Republican in the Foreign Affairs Committee of the House of Representatives, Michael McCaul, announced that if the “Axios” report were correct, it would be an indication that the Biden administration had never really wanted to prevent the pipeline. “This pipeline is not a simple commercial project that could affect our relations with (the government in) Berlin. It is a Russian project of malicious influence that threatens to deepen Europe’s energy dependence on Moscow,” criticized McCaul. “If the Putin regime is allowed to complete this pipeline, it will only be because the Biden government has decided to allow it.” Republican Senator Ben Sasse accused Biden of giving Russian President Vladimir Putin “massive strategic leverage in Europe”.
“Axios” had reported that in an upcoming report to the US Congress on sanctions because of the Nord Stream 2 construction, the US State Department only wanted to impose punitive measures on a few other Russian ships. The ministry also wanted to state that Nord Stream 2 AG and its managing director were involved in activities that could be sanctioned. To justify the waiver of punitive measures, the Ministry wants to cite national interests.
The report to Congress is due every 90 days, the deadline expires this week. “Axios” interpreted the alleged decision of the Biden government to mean that it was unwilling to shatter its relations with Germany because of Nord Stream 2. The almost completed Baltic Sea pipeline has been one of the main points of contention in German-American relations for years.
Blinking made rejection clear
In a telephone conversation with his German colleague Heiko Maas on Tuesday, US Secretary of State Antony Blinken once again emphasized that the US is rejecting the pipeline from Russia to Germany. “Secretary of State Blinken underscored the US determination to work with allies and partners to counter Russian efforts that undermine our collective security,” the State Department said. At his hearing in the Senate before the confirmation in office in January, Blinken said about the pipeline, which was already almost finished at the time: “I am determined to do everything we can to prevent this completion.”
So far, the US has only imposed sanctions on the Russian laying ship “Fortuna” and its operating company KVT-RUS because of Nord Stream 2 – the government of Republican President Donald Trump announced these punitive measures shortly before the end of its term in January. The ship and company were also mentioned in the first Blinking report from the US State Department to Congress on February 19. At that time, however, contrary to expectations, other companies were not punished or threatened with punitive measures. Even after that, Republicans had criticized Biden allowing the pipeline to be completed.
Completion has been on hold since the end of 2019
Biden has repeatedly called Nord Stream 2 a “bad deal for Europe”. At the end of 2019, construction work on the pipeline, which was already very far advanced, was stopped after the USA had enacted an initial sanctions law (Peesa) against the special ships that laid the pipes. In a second law (Peesca), the sanction options were made much broader. Both laws were supported by both Republicans and Democrats in Congress.
After completion, Nord Stream 2 is expected to transport 55 billion cubic meters of natural gas per year from Russia to Germany. The USA fear that the project will make Europe too dependent on Russian gas. Eastern European countries such as Poland and the Baltic countries are also rejecting the pipeline. Proponents counter the Americans that they are only looking for better sales opportunities for their liquefied gas in Europe.
The Russian company Gazprom is formally the sole shareholder of Nord Stream 2 AG, based in Zug, Switzerland. In addition, there are the German groups Wintershall Dea – a joint venture between BASF and LetterOne – and Uniper (a spin-off from Eon) as well as the Dutch-British Shell, Engie (formerly GDF Suez) from France and OMV from Austria as “supporters”. Nord Stream supervisory board chairman is former chancellor Gerhard Schröder, at Nord Stream 2 the SPD politician is president of the board of directors.
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