American ambassador tells German firms they may face sanctions over Russia pipeline
BERLIN (Reuters) – The US ambassador to Germany warned companies involved in the construction of the Russian-led Nord Stream 2 gas pipeline that they could face sanctions if they stick to the project, a senior US official said on Sunday.
US President Donald Trump accused Germany of being a “captive” of Moscow due to its reliance on Russian energy and urged it to halt work on the $11 billion gas pipeline.
The pipeline, which would carry gas straight to Germany under the Baltic Sea, is also seen as critical by other European countries, since it would deprive Ukraine of lucrative gas transit fees which could make Kiev more vulnerable in the future.
US Ambassador Richard Grenell addressed the issue in a letter sent to several companies, the US Embassy said.
“The letter reminds that any company operating in the Russian energy export pipeline sector is in danger under CAATSA of US sanctions,” the spokesman said, adding that other European states have also opposed the pipeline.
Germany and other European allies accused Washington of using its Countering America’s Adversaries Through Sanctions Act (CAATSA) to meddle in foreign and energy policies.
Russian gas giant Gazprom is implementing the project jointly with its Western partners – Uniper, Wintershall, Engie, Austria’s OMV and Anglo-Dutch group, Shell.
The letter raised eyebrows within the German government. A German diplomat said that the ambassador’s approach did not correspond to diplomatic practices and that Berlin would address the issue in direct talks with officials in Washington.
An Uniper spokesman declined to comment; no immediate reaction was available from Wintershall.
Germany and Russia have been at odds since Moscow annexed Crimea from Ukraine in 2014. However, they do share a common interest in the Nord Stream 2 project, which is expected to double the capacity of the existing Nord Stream 1 route.
German newspaper Bild am Sonntag, which was first to report on the letter, said that Grenell was trying to blackmail German companies with the letter, the US Embassy denied this.
“The only thing that could be considered blackmail in this situation would be the Kremlin having leverage over future gas supplies,” the embassy spokesman said.
The letter was coordinated in Washington by several government agencies and “is not meant to be a threat but a clear message of US policy,” the spokesman added.
On Thursday, German Foreign Minister Heiko Maas said that any US sanctions against Nord Stream 2 would be the wrong way to solve the dispute. He also said that questions of European energy policy have to be decided by Europe and not by the US.