US Includes NS2 Sanctions in Defence Bill

The US House of Representatives and Senate Armed Services Committees have agreed on a must-pass defence bill that includes sanctions aimed at blocking Russia’s Nord Stream 2 gas pipeline to Germany.

The measures would be imposed against companies involved in Baltic Sea pipeline’s construction, and were originally proposed under a bill earlier this year. They have now been attached to the National Defence Authorisation Act (NDAA), a $738bn bill that sets policy for the Department of Defence.

Sanctions will apply to vessels involved in laying the offshore sections of either Nord Stream 2 or Russia’s other European export project TurkStream, which runs under the Black Sea to Turkey. NDAA is expected to pass before Congress takes leave later this month for the holidays.

The impact of the sanctions is questionable, as the offshore section of TurkStream is now complete and Nord Stream 2 is due to be ready in early 2020. Nord Stream 2's construction had been held up by regulatory delays in Denmark, but Danish regulators finally issued the necessary permits in late October.