European firms may face sanctions threat

Published:

On: Jan 2021

The State Department of the United States this month stated that the European firms which it discovers are helping to implement the Nord Stream 2 gas pipeline of Russia that they face the problem of sanctions because of the outgoing administration of Donald Trump that prepares the last round of punitive estimates against the project.

The source of the US government stated that we are attempting to notify European firms about the risk factor and meanwhile, urge them to release before it's too late. The source further added that the State Department is anticipated to launch a report by coming Thursday or Friday on different companies it hopes that they are helping Russia to Germany pipeline.

Companies that could be mentioned in the recent report contain insurance offerings, helping to place the undersea pipeline or clarify the construction equipment of the project. The European firms could be a problematic condition of the US sanctions under existing legislation if they do not halt work. The source added that the Zurich Insurance Group could be listed in the report. Nord Stream 2 did not respond to a comment.

The $11 billion Nord Stream 2 pipeline is one of the most significant Russian projects in Europe which has gained concerns between Washington and Moscow. The administration of Donald Trump criticizes the Nord Stream 2 pipeline, which would deny Ukraine of profitable transit fees, indicating that it would gain Russian economic as well as a political edge over Europe. Additionally, the administration has accelerated liquefied natural gas of the United States to Europe, which is a fuel that fights with pipelined gas from Russia.

Nord Stream 2 is a commercial project which has been led by state energy firm Gazprom. The biggest economy of Europe, Germany said that the pipeline is commercial. It requires gas because it closes coal as well as nuclear plants on environmental and security worries. The United States President-elect Joe Biden opposed the pipeline project when he was vice president under the presidency of Barack Obama. It is unclear whether he would be pleased to pleasing to do settlement on the project after the 20th of January when he joins the office.