On Friday, February 19, the U.S. Department of State submitted a report to Congress on the Nord Stream 2 pipeline project as required by the Protecting Europe’s Energy Security Act, or PEESA, as amended.
This was reported by Ned Price, U.S. Department of State spokesperson in the Department Press Briefing on February 22.
The State Department report to Congress lists the companies the administration believes are helping to complete the natural gas pipeline that Russia’s state energy company Gazprom says is more than 90% complete.
According to Mr Price, there`s intense interest in the report as the document also includes the list of entities that have engaged in good-faith efforts to wind down activities related to the Nord Stream 2 project during the relevant period and, therefore, are not subject to U.S. sanctions at this time.
“This demonstrates that the legislative goals and our actions are having a good effect. We continue to examine entities involved in potentially sanctionable activity. We have been clear that companies risk sanctions if they are involved in Nord Stream 2,” the Department spokesperson said.
According to Mr Price, there are over 15 entities “that have engaged in good faith efforts to wind down activities related to Nord Stream 2 during this relevant time period” and are not subject to U.S. sanctions “precisely because they have taken these good-faith steps, steps in the right direction”.
“There are 15 – there are over 15 of them and I think that demonstrates that our strategy, including the legislative strategy, the strategy that of course, Congress is – has been behind has been working to good effect. So we’ll continue to work closely with Germany, we’ll continue to work closely with our other allies and partners in Europe to uphold Europe’s own stated energy security goals,” the Department spokesperson stated.
So far, the list includes Insurance companies headquartered mainly in the UK, Swiss Zurich Insurance Group, French Axa Group as well as the German concern Bilfinger SE and a subsidiary of the Munich Re Syndicate group, which have left the Nord Stream 2 gas pipeline construction project.
The State Department submitted a report on the pipeline to Congress on Friday, but a document has not yet been publicly released.
So far, however, the US has only imposed sanctions on the Russian company KVT-RUS, which owns the Russian pipe-laying vessel Fortuna. US allies “would not be taken by surprise" if the administration takes further action, Price said.
Reminding that the work on the pipeline was resumed in December after being suspended for nearly a year as a result of US sanctions. Construction between Russia and Germany is now almost complete. President Joe Biden believes the pipeline is a “bad deal” for Europe and many U.S. lawmakers are pushing for a new package of sanctions.