US Lawmakers Introduce New NS2 Sanctions Bill

US senators Ted Cruz, Jeanne Shaheen and John Barrasso introduced a bill to the senate on June 4 that would expand sanctions against Russia's Nord Stream 2 project: the Protecting Europe’s Energy Security Clarification Act (PEESCA).

"The new legislation clarifies that US sanctions related to Nord Stream 2 apply to vessels engaged in all pipelaying activities, as well as to those who facilitate providing those vessels," a statement on Barrasso's website says. The sanctions would also target "those who provide insurance, port facilities, or tethering services for those vessels, and ultimately to any company that provides certification for the Nord Stream 2 pipeline to begin operations."

The US claims Nord Stream 2 will undermine European energy security, but Russia has accused the US of merely wanting to protect the commercial interests of its LNG exporters.

The bipartisan bill follows on from sanctions imposed on Nord Stream 2 in December last year under the Protecting Europe's Energy Security Act (PEESA) which forced Swiss contractor Allseas to halt work on the pipeline. Only 6% of the pipeline's offshore section is left to complete, and Russia is expected to use its own pipelaying vessels to finish the job.

Russia's Akademik Cherskiy and Fortuna pipelayers are currently stationed at the German port of Mukran, which Gazprom has been using over the years as a storage base for Nord Stream 2's pipes.

One of the lobbyists for the bill was Ukraine's state Naftogaz, worried about the loss of transit fees if Gazprom were able to bypass it. Commenting on the news, it said: "Immediate passing the PEESCA by the Senate without delay may put an end to the realisation of the Nord Stream 2 project and end the threat it poses to European security. Naftogaz will continue its advocacy campaign in the US and Europe to safeguard Ukrainian, European, and transatlantic security interests."