Pompeo: investors in Russian pipeline projects risk being hit by sanctions

US’s Pompeo wants Denmark to stop work on Nord Stream 2 gas pipeline | DW News

Pompeo: investors in Russian pipeline projects risk falling under sanctions

US may impose sanctions on European companies involved in projects; Nord Stream 2 and Turkish Stream

US Secretary of State Mike Pompeo has warned investors involved in two Russian pipeline projects that they may face sanctions as the Trump administration tries to limit the Kremlin’s economic leverage over Europe and Turkey..

Speaking at a press conference on Wednesday, Pompeo said European investors in the Nord Stream 2 and Turkish Stream projects are at risk of US sanctions under the 2017 Countering America’s Enemies Through Sanctions Act. Pipelines will transport gas from Russia to Europe and Turkey.

“This is a clear warning to companies that we will not allow complicity in projects that increase Russia’s malicious influence. Get out of these projects now, otherwise there is a risk of repercussions, ”said Pompeo.

The United States, with its natural gas surplus, wants to export its LNG to Europe.

Russian Foreign Ministry spokeswoman Maria Zakharova said that sanctions against these two pipelines are tantamount to political pressure, TASS news agency reported..

“This is the use of political pressure for unscrupulous competition,” she said. – An indicator of the weakness of the American system. In addition to power techniques, there are no effective tools “.

Pompeo: investors in Russian pipeline projects risk being hit by sanctions

The construction of the Nord Stream 2 pipeline was suspended in December last year after the Swiss-Dutch company Allseas, which specializes in subsea construction, withdrew from the project. This happened after US President Donald Trump signed a bill on defense policy, providing for other sanctions on the project..

The remaining 160 km of the pipeline can be completed by two Russian pipe-laying vessels. Half of the project, worth about € 9.5 billion ($ 10.5 billion), is funded by Russian energy giant Gazprom.

Last month, a bipartisan group of US senators led by Democrat Jean Shaheen and Republican Ted Cruise introduced a bill on sanctions against Nord Stream 2. According to lawmakers, this initiative

is capable of stopping the project as it provides for the expansion of existing sanctions and fines for parties providing underwriting, insurance or reinsurance and pipe laying services.

Nord Stream 2 aims to double the existing capacity of the Nord Stream route.

The Nord Stream 2 project also involves the Austrian OMV, the German firms Uniper and Wintershall, the Anglo-Dutch energy company Royal Dutch Shell and the French Engie..

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