Biden allows imposition of sanctions in connection with Nord Stream 2
According to a press statement on the website of the U.S. Department of State, the Department has submitted a report pursuant to the Protecting Europe’s Energy Security Act of 2019 (PEESA). In particular, the report lists one Russian vessel and two Russian persons involved in the Nord Stream 2 pipeline. Persons identified in the report will be sanctioned under PEESA.
“With today’s action, the Administration has now sanctioned 7 persons and identified 16 of their vessels as blocked property pursuant to PEESA in connection with Nord Stream 2,” the statement says.
In addition, President Biden signed an Executive Order that allows the U.S. Government to impose sanctions applicable to PEESA-designated persons. The decree entitled “Executive order on blocking property with respect to certain Russian energy export pipelines” was posted on the website of the White House.
According to the decree, the U.S. Secretary of State, in consultation with the Secretary of the Treasury, are authorized to issue orders under which all assets of such individuals in the United States may be blocked.
It also provides for the possibility of visa restrictions and a ban on the transfer of funds by Americans to individuals on the sanctions list.
As reported, the construction of Russia’s Nord Stream gas pipeline is still underway. The new pipeline will run via the Baltic Sea from Russia to Germany, bypassing Ukraine. The sole shareholder of Russia’s project is OJSC Gazprom.
The construction of the gas pipeline is set to be completed on August 23.
The U.S. and German governments have recently issued a joint agreement on Nord Stream 2. The U.S. committed to refrain from hindering the pipe’s completion, while Germany undertook to impose sanctions on Russia in case Moscow goes for another act of aggression against Ukraine, as well as vowed support for Ukraine in energy transformation
Ukraine opposes the construction of Nord Stream 2, since it will connect Russia and Europe bypassing Ukrainian territory. The launch of the gas pipeline threatens the transit of Russian gas through Ukraine, and also carries risks for the security of Ukraine.
iy
