Potential new US sanctions will block about 700 million euros of investment in the completion of the “Nord stream-2” gas pipeline, the press service of the operator of this construction project, Nord Stream 2 AG, told reporters.
“The additional sanctions proposed by the US will directly affect more than 120 companies from more than 12 European countries. In a difficult economic situation, the sanctions will block about 700 million euros of investment in completing the construction of the gas pipeline,” the company said.
Also, the US sanctions will put at risk about 12 billion euros of capital investments already made in the EU’s energy infrastructure, including about 8 billion invested in the construction of “Nord stream-2,” 3 billion euros spent by European companies in the development of gas transport infrastructure in Germany and 750 million euros in the Czech Republic, Nord Stream 2 AG estimates. This infrastructure was built to deliver gas from “Nord stream-2” to markets across Europe.
“These sanctions appear to be designed to increase the supply of more expensive American LNG to Europe by destroying a potential competitor. In fact, without the “Nord stream-2″ gas pipeline, European industrial and private consumers will have to pay billions more annually for this crucial energy resource,” the operator stressed.
The “Nord stream-2” project involves the construction of a gas pipeline with a capacity of 55 billion cubic meters per year from the Russian coast through the Baltic sea to Germany. The project is actively opposed by the United States, which promotes its liquefied natural gas in the EU, as well as Ukraine, which is afraid of losing transit. The United States imposed sanctions on “Nord stream-2” in December, requiring companies to stop laying the pipeline immediately. Swiss Allseas almost immediately announced the suspension of such work.
Russia has repeatedly indicated that the project is commercial and profitable for Europe. Gazprom is taking measures to complete the construction of the gas pipeline, the essence of which it did not disclose, and expects its launch in late 2020 or early 2021. At the moment, about 94% of pipes are laid.
However, on June 4, a number of us senators, including influential Republican Ted Cruz, introduced a bill in the US Senate on new sanctions against “Nord stream-2.” According to their statement, the sanctions apply to all vessels involved in the construction, those who facilitate the provision of these vessels, provide insurance and port services for them, as well as those who offer certification for the start of operation of the gas pipeline.