These companies threaten because of Nord Stream 2 US sanctions

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The US Ambassador in Berlin, called on German companies to rethink their participation in Nord Stream 2. Can US sanctions put a stop to the construction of the Baltic Pipeline from Russia to Germany at all?

“We continue to stress that companies involved in the Russian energy export sector, participate in something that is associated with a significant risk of Sanctions.” The American Ambassador in Berlin, Richard Grenell, in the beginning of January, wrote in a letter to the German companies participating in the Nord Stream project 2. The are the energy companies Uniper, that after a spin-off of the Eon group, but also the largest German Oil and gas producer Wintershall, a subsidiary of BASF.

Furthermore, the Austrian OMV, Royal Dutch Shell, as well as the French group with Engie are on the North Stream 2 involved. Of the foreign partners of the project, OMV CEO Rainer Seele responded alone. He told the Handelsblatt, “Washington relies on confrontation instead of cooperation with the allies.” All five companies apply in the case of Nord Stream 2 as the “financial investors”.

Long ago, the United States have created a legal framework for the imposition of sanctions. The “Countering America’s Adversaries Through Sanctions Act” (CAATSA) was adopted in 2017, and allows Washington financial sanctions against persons investing in the construction of Russian Export Pipelines. Sanctions in the framework of CAATSA would withdraw from the project financial support. Each company contributes according to the contract of 950 million euros to the project. But even when Nord Stream 2 is losing billions of dollars from the financial investors, it can be hardly stopped yet. According to observers, Russia and its energy company Gazprom are able to secure without the use of foreign participants in the financing.

Major Construction Companies

Michael Harms, Executive Director of the Eastern Committee of German economy, said the DW, Nord Stream 2 627 suppliers from all over the world, including the pipe-publisher-corporate. “These are highly specialised companies that have a unique Know-how. Sanctions against these companies would delay the whole project, at least, very strong or extremely endangering,” says Harms.

Among the specialist companies, the route with vessels the tubes are on the bottom of the Baltic sea, which Allseas Group, based in Switzerland, and the Italian company Saipem, which has now completed its part of the in the summer of 2018 started Working almost. The largest part of the construction of the Allseas Group. Your ship ‘Pionieering Spirit’ can be transferred per day, around five kilometers of pipes. No other ship can do this faster today.

US sanctions against Allseas would not delay the project, Nord Stream 2, but freezing, says Mikhail Krutichin, Partner of consulting company RusEnergy. “There is no substitute,” he told DW. Gazprom can installation according to Krutichin alone with the Russian Pipe-vessel, MRTS Defender’ expect. However, it could only be in the shallow water and not in the whole Baltic sea. According to the company, the depth to which the ship is targeted, a maximum of 150 meters. The Pionieering Spirit’, however, can be used to install pipes in a depth of up to four kilometers.

A pipelay vessel from Allseas in the Baltic sea, Rügen island

Race with the time

In his letter to the German company Richard Grenell stressed, in Washington, the pressure against Nord Stream 2, proceed waxes. Both leading parties, Republicans and Democrats, had adopted in December 2018, a joint Resolution, the sanctions against the project in accordance with the CAATSA-law supported. In addition, it is checked Grenell, according to the Congress another law, which also provides sanctions against North Stream 2.

But why should the United States impose any sanctions, even before the project is finished? Finally, the CAATSA-law, which was signed in 2017, from President Donald Trump, the US President allowed, against Nord Stream 2. The more so that the project is mentioned in the law as a possible target. But it is also a fact that according to the law, sanctions should be agreed with the European partners. But Germany, the main European Partner in Nord Stream 2, is against sanctions. An Argument that Russian deliveries only about a third of all natural gas from imports to Germany.

According to Michael Carpenter from the American Think Tank “Penn Biden Center” also reject some members of the US Administration sanctions. “You are convinced, that the tensions in the transatlantic relations would be reinforced,” he told DW. The former senior Pentagon staff believes that President Trump is quite willing to “cracks” in relation to the European allies. But many members of his Administration would keep penalties for “over-step” and threats prefer. “If further steps are not effective to stop the construction of Nord Stream 2, then the imposition of sanctions as a last resort, it is very likely,” says Carpenter.

What relates to the new sanctions law, the U.S. Ambassador Richard Grenell mentioned, it wants to checking the Congress in this spring. Washington is not much time left to stop the construction of Nord Stream 2. Meanwhile, more than 370 of the 1200 planned kilometers of pipes are laid on the bottom of the Baltic sea. At the end of the year, the first Gas could flow through the new Pipeline.