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Tuesday, July 7, 2020

Germany wants the EU to impose sanctions on the US? Poland will not agree

Germany is demanding a tough EU response to US sanctions imposed in connection with the construction of the Nord Stream 2 gas pipeline. Work is underway to respond to US action. Poland will not agree to similar solutions - according to Dziennik Gazeta Prawna.

The European Commission announced that the initiative will be presented at the end of the year. It is a response to announcements of further US sanctions against companies working on the Nord Stream 2 project. The specter of sanctions is a serious concern for Berlin, as they may determine the end of the project, as acknowledged by German Deputy Minister of Economy Thomas Bareiss.

The investment was halted at the end of 2019 after the Swiss contractor withdrew due to US sanctions. If the new US sanctions come into force, the questionable profitability of the gas pipeline will be further undermined, experts say. The new delays may ultimately affect the economic viability of the gas pipeline.

The draft of possible further US sanctions for the Nord Stream 2 pipeline, which is being prepared by US senators, is aimed at, among others, insurers - writes the Bloomberg.

The act will also sanction "anyone who provides port infrastructure for pipe-laying vessels," reads Bloomberg.

The United States justifies its negative attitude towards Nord Stream 2 in that it would make Europe even more dependent on gas supplies from Russia and would increase Russia's ability to exert political pressure on EU countries. This position is also shared by Poland and Ukraine. Washington has repeatedly called on Europe to increase purchases of US liquefied gas (LNG).