Wednesday, October 5, 2022

HomeUkraine-Russia crisisUpdate: the US joins Germany's sanctions on Nord Stream 2

Update: the US joins Germany’s sanctions on Nord Stream 2

Moscow has launched a full-scale war in Ukraine suggesting that the developments will reverberate beyond the relations of the two countries and have multiple repercussions, including on the energy sector of the region and the European Union.

The global gas market has already responded and prices have grown in parallel to the unfolding military invasion, according to the Wall Street Journal.

US President Joe Biden has announced that he is imposing sanctions on the operator of the Nord Stream 2 natural-gas pipeline in response to Russia’s move.

“Today, I have directed my administration to impose sanctions on Nord Stream 2 AG and its corporate officers. These steps are another piece of our initial tranche of sanctions in response to Russia’s actions in Ukraine”, said Biden on 23 February. 

The top executive of the company building Nord Stream 2, Matthias Warnig, has now also been listed as sanctioned, according to the statement of the Treasury Department.

On 22 February, Germany halted Nord Stream 2 approval and the country’s Federal Foreign Office started discussions on the negative impact of renewables and hydrogen investments climate in Ukraine.

The war has most likely scrapped Germany’s plans to open a Hydrogen Diplomacy Office in Moscow and in Kyiv too. The move could promote the hydrogen economy among the three countries and in the entire region.

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