Arab Times

US warns German firms of possible sanctions over Russia gas pipeline

US blackmaili­ng companies: German newspaper

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BERLIN, Jan 13, (RTRS): The US ambassador to Germany has 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 has 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 critical by other European countries as it would deprive Ukraine of lucrative gas transit fees which could make Kiev more vulnerable in the future.

In this file photo, a TransCanad­a’s Keystone pipeline facility is seen in Hardisty, Alberta. Justice Department attorneys and the Canadian company behind the proposed Keystone XL oil pipeline say the US government shutdown shouldn’t delay a court hearing on a judge’s decision to

halt constructi­on. (AP)

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 embassy spokesman said, adding that other European states also opposed the planned pipeline.

Germany and other European allies accuse Washington of using its Countering America’s Adversarie­s Through Sanctions Act (CAATSA) to meddle in their foreign and energy policies due to its extraterri­torial effect.

Russian gas giant Gazprom is implementi­ng the project jointly with its Western part of – Uniper, Wintershal­l, Engie, Austria’s OMV and Anglo-Dutch group Shell.

Correspond

The letter raised eyebrows within the German government. A German diplomat said the ambassador’s approach did not correspond to common diplomatic practice and that Berlin would address the issue in direct talks with officials in Washington.

An Uniper spokesman declined to comment while no immediate reaction was available from Wintershal­l.

Germany and Russia have been at odds since Moscow annexed Crimea from Ukraine in 2014. But they have a common interest in the Nord Stream 2 project, which is expected to double the capacity of the existing Nord Stream 1 route.

German newpaper 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 US government agencies and “is not meant to be a threat but a clear message of US policy”, the spokesman added.

German Foreign Minister Heiko Maas said on Thursday that any US sanctions against Nord Stream 2 would be the wrong way to solve the dispute and that questions of European energy policy had to be decided in Europe, not in the United States.

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