US slaps sanctions on companies tied to Nord Stream 2 in bid to squeeze Russia

The United States took a bold stance on Wednesday by imposing fresh sanctions on several Russian-linked entities and individuals involved in the construction of Nord Stream 2, a massive undersea gas pipeline connecting Russia to Germany. The State Department announced that it has re-imposed financial penalties on entities such as Nord Stream 2 AG, the project operator, and a Russian-based insurer that collaborated with companies working on the pipeline.

Additionally, the sanctions targeted a Russian-owned maritime rescue service, a Russian-based water transport logistics company, and over a dozen vessel owners who were either previously under sanctions or facing sanctions for the first time. State Department deputy spokesperson Vedant Patel emphasized the U.S.’s continued opposition to Nord Stream 2 and any attempts to revive the project.

The decision to impose sanctions comes against the backdrop of Russia’s history of weaponizing its energy resources, including cutting gas supplies to Europe shortly after the start of the conflict in Ukraine in 2022. Patel reiterated the U.S.’s commitment to preventing Russia from using its energy assets for political leverage.

The announcement of the new sanctions coincided with a series of explosions targeting both the Nord Stream 1 and 2 pipelines in late September 2022. While no entity has claimed responsibility for the blasts, U.S. and Western leaders have labeled the incidents as potential acts of sabotage. Russian President Vladimir Putin dismissed the idea that Russia would sabotage its own pipelines, describing it as “idiotic.”

Before the conflict in Ukraine, Nord Stream 1 supplied approximately 35% of the European Union’s Russian gas imports. However, Moscow suspended gas supplies indefinitely, citing maintenance needs. Nord Stream 2 was expected to double the capacity of its predecessor, further highlighting Europe’s reliance on Russian energy.

In response to the crisis, the EU has sought to diversify its energy sources by increasing purchases of liquefied natural gas from the U.S. and other suppliers, investing in nuclear power, and expanding regasification terminals. These efforts aim to reduce Europe’s dependence on Russian energy and enhance energy security in the region.

The U.S. sanctions underscore the ongoing geopolitical tensions surrounding energy security and Russia’s aggressive foreign policy. By targeting entities involved in Nord Stream 2, the U.S. aims to protect European interests and uphold global energy stability. The move signals Washington’s commitment to countering Russian influence in the energy sector and promoting a more diversified and secure energy landscape.