Biden weighs sanctions on Russian pipeline he called 'a bad deal for Europe'
- 3 years ago
Ukraine, Poland, France and a bipartisan majority in Congress oppose the pipeline, saying it will make Europe dependent on Russian energy.
President Joe Biden will have to make a decision soon on whether to impose sanctions on foreign companies working on a Russian natural gas pipeline, a move that would cause friction with Germany and raise tensions with Moscow.
Under legislation adopted by Congress last month shortly before Biden's inauguration, firms that perform work in support of the Russian pipeline in the Baltic Sea are subject to U.S. sanctions, including companies that insure the project. The law requires the State Department to report to Congress later this month on which companies are deemed to be in violation of the sanctions.
The administration has said it is reviewing the issue and the White House National Security Council was due to hold a working-level meeting on Friday to discuss the pipeline project, two U.S. officials told NBC News.
If the administration chose to delay enforcing the sanctions as requested by Germany, officials would have to issue a waiver — which likely would trigger a sharp reaction in Congress.
The Russia-to-Germany pipeline, known as Nord Stream 2, has been a persistent source of tension between Washington and Berlin for years, with German Chancellor Angela Merkel arguing it is a purely commercial matter that should not be subject to geopolitics or linked to human rights concerns.
Nord Stream 2 would double the shipments of Russian natural gas to Germany, providing German industry with inexpensive energy as the country makes a transition from coal and nuclear energy to renewable sources.
But opponents of the pipeline, including U.S. lawmakers from both parties as well as governments in Central and Eastern Europe, say the pipeline would render Europe dependent on Russian energy at a time when Russian President Vladimir Putin is crushing dissent at home and adopting an aggressive stance abroad.
The White House meeting comes after reports that companies have returned to laying pipe in apparent violation of the U.S. sanctions. Nord Stream 2 said earlier this month it had resumed work on the project, with a vessel called Fortuna conducting work in Danish waters on the last stretch of pipeline.
"We are aware of the reports of the Fortuna beginning work in Danish waters," a State Department spokesperson told NBC News. "We will monitor activity to complete or certify the pipeline and, if such activity takes place, make a determination on the applicability of sanctions."
The spokesperson added that "sanctions are only one among many important tools" and that the United States will continue to work with allies and partners "to ensure Europe has a reliable, diversified energy supply network that does not undermine our collective security."
Biden has called Nord Stream 2 a "bad deal for Europe."
President Joe Biden will have to make a decision soon on whether to impose sanctions on foreign companies working on a Russian natural gas pipeline, a move that would cause friction with Germany and raise tensions with Moscow.
Under legislation adopted by Congress last month shortly before Biden's inauguration, firms that perform work in support of the Russian pipeline in the Baltic Sea are subject to U.S. sanctions, including companies that insure the project. The law requires the State Department to report to Congress later this month on which companies are deemed to be in violation of the sanctions.
The administration has said it is reviewing the issue and the White House National Security Council was due to hold a working-level meeting on Friday to discuss the pipeline project, two U.S. officials told NBC News.
If the administration chose to delay enforcing the sanctions as requested by Germany, officials would have to issue a waiver — which likely would trigger a sharp reaction in Congress.
The Russia-to-Germany pipeline, known as Nord Stream 2, has been a persistent source of tension between Washington and Berlin for years, with German Chancellor Angela Merkel arguing it is a purely commercial matter that should not be subject to geopolitics or linked to human rights concerns.
Nord Stream 2 would double the shipments of Russian natural gas to Germany, providing German industry with inexpensive energy as the country makes a transition from coal and nuclear energy to renewable sources.
But opponents of the pipeline, including U.S. lawmakers from both parties as well as governments in Central and Eastern Europe, say the pipeline would render Europe dependent on Russian energy at a time when Russian President Vladimir Putin is crushing dissent at home and adopting an aggressive stance abroad.
The White House meeting comes after reports that companies have returned to laying pipe in apparent violation of the U.S. sanctions. Nord Stream 2 said earlier this month it had resumed work on the project, with a vessel called Fortuna conducting work in Danish waters on the last stretch of pipeline.
"We are aware of the reports of the Fortuna beginning work in Danish waters," a State Department spokesperson told NBC News. "We will monitor activity to complete or certify the pipeline and, if such activity takes place, make a determination on the applicability of sanctions."
The spokesperson added that "sanctions are only one among many important tools" and that the United States will continue to work with allies and partners "to ensure Europe has a reliable, diversified energy supply network that does not undermine our collective security."
Biden has called Nord Stream 2 a "bad deal for Europe."