Gazprom PJSC Slavyanskaya Compressor Station, the starting point of the Nord Stream 2 gas pipeline, in Ust-Luga, Russia, in January 2020.
Photographer: Andrey Rudakov / Bloomberg
Photographer: Andrey Rudakov / Bloomberg
The US is likely to drop sanctions on any German entities for Russia’s Nord Stream 2 gas pipeline, according to four people familiar with the matter, as the Biden administration is trying to stop the project without opposing a close European ally.
A key report to Congress, scheduled for Tuesday, could be released immediately on Friday and is expected to list only a small number of Russia-related entities, according to the people, who asked not to be identified because the policy has not been released. announced.
Nord Stream 2 emerged as a major source of friction in transatlantic relations during the administration of President Donald Trump, as the project, which will bring Russian gas to the heart of Europe, was nearing completion. Trump officials, in arguments essentially backed by President Joe Biden’s administration, said the project undermines European security by linking the continent more closely to Moscow.
A truck was transporting a section of pipeline through the yard to the Gazprom PJSC Slavyanskaya compressor station, the starting point of the Nord Stream 2 gas pipeline, in Ust-Luga, Russia, on 28 January.
Photographer: Andrey Rudakov / Bloomberg
People familiar with the issue have said that Secretary of State Antony Blinken despises targeting companies or individuals in countries such as Germany, arguing that it is more important to find a diplomatic solution and heal the ruptures created by Trump’s “America First” approach to politics. external.
This reluctance arouses criticism among critics who claim that US law imposes sanctions on any foreign entity if it has helped build the pipeline. They also say that while the US could try to ease the stalks with Germany, it risks alienating other allies such as Ukraine, Poland and the Baltic states.
After only a month in office, the pipeline debate is forcing the Biden administration to navigate between trying to keep pressure on Russia and building closer ties with Germany, a NATO ally. Time is running out for the Americans, the pipeline is almost over.
Previously: Germany is looking to deal Biden on the controversial pipeline
Two people familiar with the matter said that although the Trump administration had evaded sanctioning German entities, it was preparing such an action in its last weeks. Potential targets included Matthias Warnig, the German executive director of Nord Stream 2 and a former East German agent who has personally known Russian President Vladimir Putin since at least 1991, people said.
People said that Trump’s National Security Council had developed a detailed plan to eventually stop the project, and the only reason sanctions against German entities never happened was that they ran out of time. .
Two other people familiar with the issue argued that the Trump administration’s plans were not specific and never passed the stage of discussion.
Nord Stream 2 pipeline sections in the Baltic port of Mukran on the island of Ruegen in Sassnitz, Germany, in November 2020.
Previously: the Balkan pipeline expands Russia’s coverage of gas pumping in Europe
“To sanction a big project threatening German and other European targets burns a lot of political capital,” said Daniel Fried, former ambassador, deputy secretary and coordinator of State Department sanctions in democratic and republican administrations. “It simply came to our notice then. They didn’t upset that. But he tries to fix something in a way that takes everyone’s interests into account and is not easy. “
The State Department declined to comment Thursday. But officials have repeatedly said Biden opposes Nord Stream 2.
“President Biden has made it clear that Nord Stream 2 is a bad deal,” White House spokeswoman Jen Psaki said on Feb. 16. “It’s a bad deal because it divides Europe, exposes Ukraine and Central Europe to Russia, Russian manipulation.”
The debate over Nord Stream 2 was put into administration in its early days because of the obligation of Congress to submit a report by February 16 – a deadline that was missed – detailing the pipeline entities that could be subject to sanctions.
The report is expected to list a small number of Russian entities that are likely to be sanctioned. Another set of entities will be seen as safe from the threat of sanctions, as they work with the project.
German proposals
The big question is what happens next. Germany is still trying to keep the project alive and has revived proposals rejected by the Trump administration to allow gas to flow through the pipeline, while limiting the leverage it would offer Russia.
But this could give the impression that the US is weak about Russia and is dedicating its demands. It could also be seen as signaling that the US is effectively abandoning other US allies whose leaders oppose the pipeline and risking backlash from Republican senators such as Ted Cruz of Texas, who has threatened to support nominees for the Department. State on this issue.
“Senator Cruz expects the Biden administration to fulfill its legal mandates to impose sanctions on any ship, insurer or certifier involved in any pipeline installation activity, in part because it knows that the State Department already has all the information they need to impose these sanctions, ‘said Cruz spokeswoman Jessica Skaggs. “He is prepared to use the full range of Senate prerogatives to ensure that they meet this requirement.”
– With the assistance of Daryna Krasnolutska