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Nord Stream 2: The New Us Sanctions Will Block The €700 Million For The Completion Of The Pipeline

Nord Stream 2: The New Us Sanctions Will Block The €700 Million For The Completion Of The Pipeline

The expansion of US sanctions against Nord Stream 2 will block about €700 million of investment in the completion of the gas pipeline, according to the operator of the project, the company Nord Stream 2 AG.

"The additional sanctions proposed by the US will directly affect more than 120 companies from more than 12 European countries. In a difficult economic situation, the sanctions will block about €700 million of investment in completing the construction of the gas pipeline, " the company said.

Moreover, according to Nord Stream 2 AG, these sanctions will put at risk about €12 billion of investment in the EU's energy infrastructure, including about €8 billion invested directly in the construction of Nord Stream 2, as well as €3 billion invested in the development of gas transport infrastructure in Germany, and €750 million in the Czech Republic. This infrastructure was built to deliver gas from Nord Stream 2 to markets across Europe.

"It should be noted that these sanctions seem designed to increase the supply of more expensive American LNG to Europe by destroying a potential competitor. In fact, without the Nord Stream 2 gas pipeline, European industrial and private consumers will have to pay billions more annually for this key energy resource," the company concluded.

Earlier, US Congressman Steve Womack said on Twitter that the US Senate included additional sanctions against Nord Stream 2 in the draft defense budget of the country.

At the end of 2019, Donald Trump signed the law on the defense budget, which included a provision on sanctions against the Nord Stream 2, including against companies that agreed to participate in this project. Against this background, the Swiss company Allseas, which laid pipes for Nord Stream 2, suspended work and recalled its vessels. The head of Gazprom, Alexey Miller, said that the pipeline will be completed on its own.

About investment in the project

The Nord Stream 2 project involves the construction of two lines of a gas pipeline with a total capacity of 55 billion cubic meters per year from the Russian coast through the Baltic sea to Germany. The pipeline will bypass transit States (Ukraine, Belarus, and Poland) through the exclusive economic zones and territorial waters of Russia, Finland, Sweden, Denmark, and Germany.

Gazprom's European partners-British-Dutch Royal Dutch Shell, Austrian OMV, French Engie, and German Uniper, and Wintershall, collectively Finance the project by 50%, that is, up to €950 million each.

Earlier, the press service of Wintershall Dea TASS explained that to date, about 75% of the amount of €950 million, about 712 million-stipulated in the contract in April 2017 has been allocated to finance the project.

Uniper, another financial partner of the project, by the end of 2019, the company's investment in Nord stream 2 amounted to more than €700 million. At the same time, they refused to disclose data as of the current moment. The total investment volume of OMV to date is €712 million, the press service of the Austrian company noted.

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