The US hits the Nord Stream 2 consortium and warns of more sanctions on Russia

The United States on Wednesday hit the consortium in charge of operating the Nord Stream 2 gas pipeline with sanctions and intensified its collaboration with the European Union (EU) to retaliate against Russia if it continues with its actions in eastern Ukraine.

The sanctions against Nord Stream 2 represent the next step in the punishment that Washington and its allies are imposing on the Kremlin, after on Monday it recognized the independence of the self-proclaimed breakaway republics of Donetsk and Luhansk, in the Donbas region, in the east. from Ukraine.

Specifically, Washington’s reprisals are directed against the Nord Stream 2 AG consortium, which built and manages the gas pipeline, and against its executive director, the German Matthias Warnig.

The consortium is registered in Switzerland and its majority shareholder is the Russian energy giant Gazprom, although it has also signed financing agreements with the German companies Wintershall Dea and Uniper, the French Engie, the Austrian OMV and the British Shell.

The White House has not clarified whether the sanctions are only directed against Gazprom, which had already been sanctioned by Washington in the past, or whether other European companies will also be affected.

For years, the United States opposed construction of Nord Stream 2 on the grounds that it would increase Europe’s dependence on Russian gas, but last year President Joe Biden allowed the project to be completed by lifting sanctions he reimposed on Wednesday.

Washington’s action comes after German Chancellor Olaf Scholz announced on Tuesday the suspension of the gas pipeline certification process, whose construction was completed last year, although it had not started operating.

The Nord Stream 2 was built with the aim of transporting Russian gas directly to Germany without going through Ukraine, which deprived that country of an important source of income since it charged Russia a canon for letting the gas pass through its territory.

Rise in energy prices

Scholz’s decision and the reimposition of sanctions by Biden have caused alert in some European countries, which see an increase in natural gas prices as inevitable, which could trigger the bill in European households.

Currently, the EU buys 41% of its natural gas from Russia and also depends on this country for the supply of crude oil, according to Eurostat data.

Given this situation, the White House spokeswoman, Jen Psaki, said that Washington does not rule out releasing more oil from its strategic reserves to respond to an escalation in energy prices.

The strategic reserves of the United States, located in large underground caverns in the south of the country, are the largest in the world and are currently around 600 million barrels.

The United States was already helping the EU increase its gas reserves by acting as an intermediary with other big exporters, such as Qatar.

Without going into details, Psaki said Wednesday that Washington is collaborating with its allies around the world to “minimize” the impact that the situation in Ukraine may have on global energy markets.

More “powerful” sanctions

Washington is especially coordinating with the European Union, in a strategy aimed at “dissuading” and “detaining” Russian President Vladimir Putin to prevent a war, Psaki said.

Proof of this coordination is the telephone call between the Secretary of State of the United States, Antony Blinken, and the European High Representative for Foreign and Security Policy, Josep Borrell, on Wednesday.

In that conversation, Blinken reiterated to Borrell that the United States is prepared to impose “strong additional sanctions” on Russia, as well as new economic measures.

The United States also has other economic punishments up its sleeve.

One of the sanctions that Washington is considering is the imposition of restrictions on the export of American chips to Russia, which would harm the manufacture of smartphones, computers and even systems for the extraction of energy, aviation or heavy industries.

Another possibility would be to exclude Russia from the Swift transaction consortium, which is the basis of the global financial system because it is used by 11,000 banks in 200 countries or territories to be able to make transfers.

This Wednesday’s sanctions against Nord Stream 2 come after the economic punishment that yesterday, Tuesday, the United States imposed on two Russian banks, their sovereign debt and members of their elite.