Monday, July 6, 2020
Home International Oil & Gas News EU prepares response to Nord Stream U.S. sanctions threat

EU prepares response to Nord Stream U.S. sanctions threat

BRUSSELS/FRANKFURT, June 29 (Reuters) – The European Commission is preparing measures to protect the European Union as it faces threatened U.S. sanctions, which could break international law, on a link to carry gas directly from Russia to Germany, the EU’s foreign policy chief said.

U.S. senators this month announced a bill tightening sanctions on the Nord Stream 2 pipeline, designed by Russia’s Gazprom.

Washington says the link, due to begin operation early next year, will boost Moscow’s economic and political influence in European countries.

“The EU’s position on U.S. sanctions against European companies that carry out legitimate and lawful activities under European law is unequivocal. They are unacceptable and contrary to international law, and the Union firmly opposes them,” Joseph Borrell said in a written response dated June 25.

“The Commission is preparing the ground for the adoption of an enhanced sanctions mechanism that will improve Europe’s resilience to the effects of extra-territorial sanctions imposed by third countries.”

Borrell did not say what form the mechanism would take, or when it would be introduced.

He was replying to a question from EU lawmaker Emmanuel Maurel regarding initial U.S. sanctions on the project imposed in December.

By damaging the European Union’s economic interests, U.S. sanctions would weaken the two parties’ show of unity against Russia’s actions to destabilise Ukraine, after Moscow annexed the Black Sea peninsula of Crimea from Kiev in 2014, Borrell said further.

The U.S. sanctions threat has prompted the German parliament’s economic committee to hold a hearing on July 1 and German business lobbies have called for rescue funds for
companies affected.

Timm Kehler, head of gas lobby Zukunft Erdgas, in a statement to the committee published before the event, said such a precedent of “extra-territorial sanctions” must be avoided.

“The adoption of such a tightened and retroactive sanctions law would be an unacceptable encroachment on the EU sovereignty and energy security of Western Europe,” he said.

- Advertisment -

Most Popular

Buffett’s Berkshire to buy Dominion Energy gas assets for $4 bln

July 5 (Reuters) - Warren Buffett's Berkshire Hathaway Inc said on Sunday it agreed to buy Dominion Energy Inc's natural gas transmission and storage...

Wall Street sees Exxon paring asset values on weakening demand

HOUSTON, July 2 (Reuters) - Exxon Mobil Corp assets are likely overvalued in light of weak oil-demand outlook, according to Wall Street analysts, and...

Oil falls below $43 on virus fears, still heads for weekly gain

LONDON, July 3 (Reuters) - Oil fell below $43 a barrel on Friday as a resurgence of coronavirus cases raised concern that fuel demand...

Refiner Phillips 66’s return-to-work policy stirs unease as virus flares

DENVER/HOUSTON, July 3 (Reuters) - About 20 employees of U.S. oil refiner Phillips 66 tested positive at its Texas headquarters for COVID-19 in recent...
- Advertisment -

Social Submissions

00:07:56

Well Blowout on a Service Rig

Well Blowout on a Service Rig
00:00:17

Well Blowout – Oilfield Blowout

Blowout going on and no well head on.
00:00:29

Water Transfer Line goes BOOM

Well that’s one way to bleed off the pressure.. 💦 💥 #oilfield #oilandgas #waterline #boom #stupid #mistake #oilfieldnow #pipeline #oilfieldstrong #oilfieldfamily
00:19:42

Subsea Spool Install Offshore

Offshore footage of a subsea spool instal. Very impressive stuff! Be sure to send your videos in if you want us to post them...