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decrease, while Russia simultaneously gains a tighter hold in the region. President
Trump has said the 1225 km (760 mile) pipeline, owned by Russia’s Gazprom,
could turn Germany into a “hostage of Russia.” The EU objects to the sanctions and
has stated that it should have sovereignty over its energy policies (www.bbc.com
2020a, b).
Geopolitical tensions between the US and Russia threaten the stability of German
and wider energy supplies. Any future targeting of Russian gas exports by the US
would significantly impact Europe’s industrial base and competitiveness. The EU is
experiencing a decline in natural gas production. This is already leading to a need
for increased imports over predicted levels. To mitigate this production decline and
maintain long-term energy supply and regional strategic importance, Europe must
develop a strategy to tackle pressures from Moscow and Washington. To achieve
this, the European Council should begin by swiftly adding all the relevant US legal
bases to the annex of the EU “blocking legislation.” Further, being outside the dollar
area, transactions with Russia should be included in the Instrument in Support of
Trade Exchanges (INSTEX). Lastly, the EU and Germany must maintain their focus
on diversification, including but not limited to higher LNG imports, as a display of
political might to Washington and Moscow (www.swp- berlin.org 2020).
A new proposal to clarify and expand US sanctions on the Nord Stream 2 pipeline has been recently introduced in the US Senate. Led by Senators Ted Cruz (R)
and Jeanne Shaheen (D), the bill has cross-party support. If the sanctions are developed, all pipeline laying activities would be affected, along with companies supplying related services, such as insurance and port services. The US sanctions
stopped the pipeline construction, leading to the rapid withdrawal of Allseas, the
company contracted to lay the pipeline. Following this, Russia readied a ship of her
own, the Akademik Czersky, to conduct the work. By deploying its own vessel,
Gazprom hopes to avoid the worst potential effects of the US sanctions, that is to
say, it hopes the project will not be abandoned. President Putin soothed the public
and reassured them that the pipeline will be completed despite the lack of international assistance and its coming at a cost of “several months” of delay. However,
Gazprom partially owns the vessel, which means that a switch to Akademik
Czersky could expose the company to US sanctions, both current and proposed
(www.forbes.com 2020a, b, c, d, e).
The new sanctions target any company that “facilitates” the laying of pipes,
including contractors, insurers, or others. “In addition, the sanctions will cover a
number of companies that provide the licensing and certification services needed
for the launch of Nord Stream 2 after its physical completion. Without this certification, the pipeline cannot be used, even if it is completed,” said Vadym Glamazdin,
an advisor to Naftogaz, Ukraine’s major energy player.
Critics believe that Nord Stream 2 is part of Putin’s two-pronged attack on
Europe’s energy security alongside the original existing Nord Stream pipeline.
Should both Nord Stream 1 and Nord Stream 2 become fully operational, Russia
will have the ability to provide most of the gas to Europe through a single choke
point, placing Moscow in a highly desirable geopolitical position (www.atlanticcouncil.org 2020a, b, c, d, e, f, g, h, i).
US–China Trade Deal
decrease, while Russia simultaneously gains a tighter hold in the region. President
Trump has said the 1225 km (760 mile) pipeline, owned by Russia’s Gazprom,
could turn Germany into a “hostage of Russia.” The EU objects to the sanctions and
has stated that it should have sovereignty over its energy policies (www.bbc.com
2020a, b).
Geopolitical tensions between the US and Russia threaten the stability of German
and wider energy supplies. Any future targeting of Russian gas exports by the US
would significantly impact Europe’s industrial base and competitiveness. The EU is
experiencing a decline in natural gas production. This is already leading to a need
for increased imports over predicted levels. To mitigate this production decline and
maintain long-term energy supply and regional strategic importance, Europe must
develop a strategy to tackle pressures from Moscow and Washington. To achieve
this, the European Council should begin by swiftly adding all the relevant US legal
bases to the annex of the EU “blocking legislation.” Further, being outside the dollar
area, transactions with Russia should be included in the Instrument in Support of
Trade Exchanges (INSTEX). Lastly, the EU and Germany must maintain their focus
on diversification, including but not limited to higher LNG imports, as a display of
political might to Washington and Moscow (www.swp- berlin.org 2020).
A new proposal to clarify and expand US sanctions on the Nord Stream 2 pipeline has been recently introduced in the US Senate. Led by Senators Ted Cruz (R)
and Jeanne Shaheen (D), the bill has cross-party support. If the sanctions are developed, all pipeline laying activities would be affected, along with companies supplying related services, such as insurance and port services. The US sanctions
stopped the pipeline construction, leading to the rapid withdrawal of Allseas, the
company contracted to lay the pipeline. Following this, Russia readied a ship of her
own, the Akademik Czersky, to conduct the work. By deploying its own vessel,
Gazprom hopes to avoid the worst potential effects of the US sanctions, that is to
say, it hopes the project will not be abandoned. President Putin soothed the public
and reassured them that the pipeline will be completed despite the lack of international assistance and its coming at a cost of “several months” of delay. However,
Gazprom partially owns the vessel, which means that a switch to Akademik
Czersky could expose the company to US sanctions, both current and proposed
(www.forbes.com 2020a, b, c, d, e).
The new sanctions target any company that “facilitates” the laying of pipes,
including contractors, insurers, or others. “In addition, the sanctions will cover a
number of companies that provide the licensing and certification services needed
for the launch of Nord Stream 2 after its physical completion. Without this certification, the pipeline cannot be used, even if it is completed,” said Vadym Glamazdin,
an advisor to Naftogaz, Ukraine’s major energy player.
Critics believe that Nord Stream 2 is part of Putin’s two-pronged attack on
Europe’s energy security alongside the original existing Nord Stream pipeline.
Should both Nord Stream 1 and Nord Stream 2 become fully operational, Russia
will have the ability to provide most of the gas to Europe through a single choke
point, placing Moscow in a highly desirable geopolitical position (www.atlanticcouncil.org 2020a, b, c, d, e, f, g, h, i).
US–China Trade Deal