US imposes sanctions against Nord Stream 2 AG
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The US has imposed sanctions targeting the company behind gas pipeline Nord Stream 2, including executive staff, informs US President Joe Biden in a statement Wednesday.
Nord Stream 2 is a major gas pipeline designed to transmit large fuel volumes from the Russia to Europe.
Biden explains that the decision has been coordinated with Germany.
Germany has previously announced a suspension of the authorization process due to tensions involving Ukraine and Russia.
The company behind Nord Stream 2 is Swiss-based Nord Stream 2 AG which falls under Russian Gazprom, a major Russian gas company whose majority owner is the Russian state.
According to Biden, Russia's actions in Ukraine are the reason for the sanctions.
No details of the sanctions have been released yet apart from Biden has instructed his administration to impose sanctions against Nord Stream AG and executive staff.
"These steps are another piece of our initial tranche of sanctions in response to Russia's actions in Ukraine," says Biden in the statement.
"As I have made clear, we will not hesitate to take further steps if Russia continues to escalate."
He finds that President Vladimir Putin has "provided the world with an overwhelming incentive to move away from Russian gas."
Russia has moved to recognize the independence of two separatist regions in eastern Ukraine, drawing condemnation from the West. Tuesday, the EU and the US announced more sanctions against Russia as a result of the development.
Wednesday, the US follows suit with sanctions targeted against the gas pipeline, a billion-dollar project.
"I want to thank Chancellor Scholz for his close partnership and continued dedication to holding Russia accountable for its actions.," remarks Biden.
While Nord Stream 2 is completed, it is not yet operational. The pipeline extends across 1,200 kilometer.
The plan is for the pipeline to transmit gas from the Russia coast near Saint Petersburg to Lubmin in north-eastern Germany. It has cost approximately USD 11.3bn and was completed in September, writes BBC.
The US has long been skeptical of the project, fearing that Russia will use the pipeline as a means of exerting political power when in use.
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