US Lawmakers Pass Symbolic NS2 Law
The US House of Representatives passed a non-binding symbolic resolution on December 11 against Nord Stream 2 (NS2), a project dedicated to supplying 55bn m³/yr of Russian gas directly to Germany, under the Baltic Sea.
The resolution asks the US government to take measures to halt the €9.5bn ($11bn) project, despite European companies having already spent billions on its development. The US has been promoting alternatives to Russian gas in Europe, including the Southern Gas Corridor, but it has not as yet taken any action against those companies financing NS2.
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The lower house of Congress unanimously passed the resolution, that was proposed by Congressman Mike Conaway. He released a statement on his official website after the bipartisan resolution was approved, saying: "[Russian president] Vladimir Putin is once again attempting to flex Russia’s energy muscle to exert control over Western Europe through the construction of NS2… Despite a 55bn m3/yr surplus in existing transit lines through Ukraine, Russia is determined to build a pipeline that would be 100% Russian owned and operated by a company whose chairman is currently sanctioned by the United States."
He added that Russia has continually defied global norms, sovereign borders, and international law. "We would be foolish to allow Vladimir Putin a stronger grip on our European allies and the global energy market," he said.
Russian piped-gas export monopoly Gazprom is the sole shareholder of NS2, but it is only paying half the costs; Engie, Austria's OMV, Anglo-Dutch major Shell and Germany's Uniper and Wintershall are sharing the other half equally. They told NGW in April that funding the project was on track, despite US's threat of sanctions.
OMV's CEO, Rainer Seele, told Russian state news agency, Sputnik, December 10 that the company had already invested $607mn on NS2 and was intending to continue financing the pipeline. Seele announced November 16 that: "We will move into 2019 with more or less 70% of the project financed already."
The US ambassador to the EU, Gordon Sondland, said November 13 that Washington has not yet taken full measures against NS2, but can take further steps to affect it significantly, or even stop it.
The US says that NS2 would make EU more dependent on Russia, while Gazprom says it would reduce transit fees and therefore prices for Europeans. NS2 representatives said November 6 that over 200 km of pipeline have been laid in the Baltic Sea so far. Gazprom's CEO, Alexei Miller, says the project will be built, despite US attempts to derail it.
Francis Fannon, US assistant secretary of state for energy resources also warned, December 10, that Russia wants to increase its leverage over Europe, and its grip over Ukraine, by using NS2.