US bill tries to block Russian pipeline

RUSSIA / FSU POLITICS - In Brief 05 Jun 2020 by Alex Teddy
On June 4 US Senators introduced legislation intended to prevent Russia for completing Nord Stream 2. This is an undersea gas pipeline to Germany. If functional it would double Russia's gas exports to Germany.Senator Cruz and Senator Shaheen are among the 5 sponsors of the bill. Cruz is a Republican and Shaheen is a Democrat.In December 2019 the US passed the Protecting Europe's Energy Security Act, which placed sanctions on ships laying Nord Stream 2. The pipeline cost USD 11 billion so Russia would be irate if it were thwarted. Many in the EU also want to see it operational.Russia dispatched one of its own ships to the Baltic to lay the last 160 km of pipeline. The two parallel pipelines are 1 230 km from Russia to Germany. The new law would broaden sanctions to cover any organization that facilitates the pipeline including insurance, port facilities or certification.Cruz said the pipeline jeopardizes American national security. The US believes Nordstream 2 will weaken Ukraine's economy and give Russia leverage over the EU. Nafotgaz is Ukraine's state LNG company and has lobbied zealously for these sanctions.Russia said that the US simply wants to export more LNG to the EU. US production of LNG has increased markedly in the last 10 years. Texas is the main LNG state in the US. The bill needs to pass both houses of Congress and be signed by Trump to become law. This is likely to happen but it will take a few weeks at least.Russia's wants the pipeline to start working in early 2021 if not sooner. The bill would make sanctions retroactive.

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