US’S Russia sanctions ‘damage EU interests’

EUROPEAN Union leaders yesterday accused the US of using sanctions to further its own economic interests at Europe’s expense in a rift that threatens the Western alliance over Russia.

In an unusually strongly worded statement, Jean-claude Juncker, the European Commission’s president, said: “America First cannot mean that Europe’s interests come last.” He warned the commission would take retaliatory action “within days” if Europe’s interests were threatened.

Germany also warned that it would be “unacceptable” for the US to use sanctions to further its own industrial sector.

France said it believed the sanctions were illegal under international law, and that it was prepared to change its own laws to “protect ourselves”.

The row came as Russian politicians threatened “painful” retaliation against US sanctions. “We are talking about an extremely unfriendly act,” Dmitry Peskov, a Kremlin spokesman said.

Meanwhile, to add to the tension, President Donald Trump’s new spokesman said last night he was “100 per cent” certain there will be a US-UK trade deal after Brexit.

Anthony Scaramucci, the new White House communications director, highlighted the “special relationship” and Mr Trump’s love of Britain as a reason why a trade deal would be secured. Asked if a deal was on the cards, he said: “One hundred per cent. He loves the United Kingdom.”

Liam Fox, the International Trade Secretary, has been in Washington for talks on a potential trade agreement.

The sanctions dispute with the EU centres on a package of tougher measures designed by the Americans to punish Russia for its alleged interference in the presidential election last year.

The measures, approved by an overwhelming majority in the House of Representatives on Tuesday, make it impossible for Mr Trump to lift the sanctions without congressional approval. EU leaders are concerned the sanctions will target any company which invests in Russian energy pipelines. They fear that will hit Nord Stream 2, a massive new gas pipeline project that will run from Russia to Germany.

Companies including Shell, the British-dutch energy giant, France’s Engie, Germany’s Wintershall and Austria’s OMV, are providing half the €9.5 billion (£8.5billion) funding for the 760-mile pipeline under the Baltic Sea.

If the US implements its measures, they would be faced with a choice between withdrawing from the project or facing draconian penalties.

£8.5bn The cost of a new 760-mile gas pipeline project, Nord Stream 2, which will travel through the Baltic Sea to Germany