Alexey Gromov, Principal Director on Energy Studies of the Institute for Energy and Finance commented to the Oil and Capital Information Portal regarding new US legislative measures aimed at combating the construction of the Nord Stream 2 gas pipeline:
«…the Countering US Adversaries Through Sanctions Act (CAATSA) was passed in August 2017. It directly spells out the possibility of introducing additional sanctions against organizations and companies that support Nord Stream 2. A severe form of such sanctions could be the regime introduced by the United States to limit investments in the project over $ 5 million, that is, a ban on any participation of foreign contractors. And this applies to any spheres of interaction with the gas pipeline.
An additional problem is the project’s image, which is already facing great resistance from the European Commission and, in fact, is supported by the efforts of Russia and Germany.
I think that the US position will complicate not only the implementation of the project in terms of construction, but also slow down and possibly create additional problems for putting the gas pipeline into practical operation," the expert said in an interview with Oil and Capital.
He believes that although the imposition of sanctions against Nord Stream 2 will actually mean sanctions against European business, the United States can take the following step:
«The United States has taken similar steps before, especially since the adoption of the CAATSA law, many European companies have revised their attitude towards Nord Stream 2, limiting participation in the project or even declaring their readiness to withdraw from it.
It is impossible to exclude such a dramatic turn of events, including a harsh scenario according to which European companies will be forced to abandon its implementation.
Russia is ready, as the Russian President Vladimir Putin spoke about, to complete the construction of the underwater part of this gas pipeline on its own. But then the question of putting the pipe into operation arises, as well as its continuation on the land part of the EU. This is already the subject of separate discussions. It is important for us not only to build a gas pipeline, but also to put it into operation, which is not yet obvious, " he said.
The commentary is available at the link:
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