Europe tells US to back off over Russian pipeline
Germany tells the US to back off (Alexander NEMENOV)
<p>Berlin (AFP) – Europe on Thursday warned Washington to mind its own business after US lawmakers gave initial approval to a bill that would sanction contractors working on a Russian pipeline to the continent.</p><p>Brussels "opposes the imposition of sanctions against any EU companies conducting legitimate business," EU Trade Commissioner Phil Hogan said.</p><p>"The (European) Commission objective has always been to ensure that Nord Stream operates in a very transparent and in a non-discriminatory way with the appropriate degree of oversight," he said.</p><p>The 9.5 billion euro ($10.6 billion) Nord Stream 2 pipeline will run under the Baltic Sea and is set to double shipments of Russian natural gas to Germany.</p><p>Europe’s biggest economy had particularly sharp words for Washington.</p><p>"European energy policy is decided in Europe, not in the US," Foreign Minister Heiko Maas said on Twitter.</p><p>"We reject external interference," he said.</p><p></p><p>- ‘Counter-sanctions’ -</p><p></p><p>The German-Russian Chamber of Commerce (AHK) said the pipeline was important for the energy security of Europe as a whole and called for retaliatory sanctions against the United States if the bill passes.</p><p>"Europe should respond to sanctions that damage Europe with counter-sanctions," said AHK chief Matthias Schepp.</p><p>Supporters of the 1,230-kilometre (760-mile) line say it will be a reliable source of cheap energy but critics warn it could end up vastly increasing Russia’s political influence in Europe.</p><p>Germany’s Schepp said the sanctions would end up affecting European companies more than Russia.</p><p>Half of the project is financed by Russian gas giant Gazprom, with the rest covered by its European partners: Germany’s Wintershall and Uniper, Anglo-Dutch Shell, France’s Engie and Austria’s OMV.</p><p>"We are aware of the ongoing legal procedure in the US Congress and the political debates. We cannot comment on any implications for our project," said Jens Mueller, a spokesman for Nord Stream 2.</p><p>Despite its own diplomatic tensions with Russia, including over the murder of a former Chechen rebel in Berlin earlier this year, Germany has repeatedly defended the long-running project.</p><p>The German economy ministry said it was awaiting the result of a US Senate vote expected next week on the bill — part of much wider US defence legislation.</p><p>US President Donald Trump has already said he would sign off on the measures if they are approved.</p><p></p><p>- Asset freezes -</p><p></p><p>The bill requires the US State Department to report back within 60 days with the names of companies and individuals involved in pipe-laying for Nord Stream 2 and TurkStream, another pipeline from Russia to Turkey.</p><p>The sanctions envisioned by the bill include asset freezes and revocation of US visas for the contractors.</p><p>One major contractor that could be hit by the sanctions is Swiss-based pipeline laying company Allseas, which has been hired by Gazprom to build the offshore section.</p><p>Contacted by AFP, Allseas would only say it was "closely following the situation and will not speculate on potential impacts of proposed sanctions".</p><p>The power of Gazprom and therefore the Russian state is at the centre of concerns about the pipeline in the United States and in eastern and central Europe.</p><p>Europe is Russia’s main customer for natural gas and critics fear the pipeline, which has an annual capacity of 55 billion cubic metres, will increase its reliance.</p><p>Countries like Ukraine, a major transit country for Russian gas, also fear they could lose influence.</p><p>Russia had hoped to launch the pipeline in late 2019 but the completion has been delayed by difficulties in obtaining permits from Denmark.</p><p>In October, Copenhagen gave Russia a permit to build a section of the pipeline on the Danish continental shelf in the Baltic Sea.</p><p>Russian Deputy Prime Minister Dmitry Kozak told reporters last month that he expected the pipeline to become operational in mid-2020.</p><p></p>
Disclaimer: Validity of the above story is for 7 Days from original date of publishing. Source: AFP.