Bipartisan group of senators proposes to expand sanctions against any pipe-laying activities, technology upgrades, insurance services and certification for Nord Stream 2
Today, US Senators Ted Cruz, Jeanne Shaheen, Ron Johnson, John Barrasso, and Tom Cotton have filed new, bipartisan U.S. sanctions legislation—called the Protecting Europe’s Energy Security Clarification Act— that will make it impossible to complete Nord Stream 2.
This legislation follows last year’s successful passage of the Protecting Europe’s Energy Security Act (PEESA) as part of the annual US defense budget bill, which imposed sanctions on the use of deep-sea pipe-laying vessels to build Nord Stream 2.
Naftogaz is grateful to the Senators and other friends of Ukraine in the United States who ensured passage of PEESA last year and who have now introduced this new PEESA Clarification Act.
Much like during the PEESA adoption process in 2019, Naftogaz was able to provide critical information to Congressional officials and key actors in the Trump administration about Russia’s capacity to finish Nord Stream 2, especially related to the Russian pipe-laying vessels Akademik Cherskiy and Fortuna.
The PEESA Clarification Act suggests imposing sanctions against: (1) companies that engage in any “pipe-laying activities,” which are defined as “activities that facilitate pipe-laying, including site preparation, trenching, surveying, placing rocks, stringing, bending, welding, coating, lowering of pipe, and backfilling”; (2) companies providing “underwriting services or insurance or re-insurance” services for pipe-laying vessels; (3) companies providing “services or facilities for technology upgrades or installation of welding equipment for, or retrofitting or tethering of,” pipe-laying vessels; and (4) companies providing “services for the testing, inspection, or certification necessary for or associated with the operation of the Nord Stream 2 pipeline.”
Immediate passing the PEESA Clarification Act by the Senate without delay may put an end to the realization of the Nord Stream 2 project and end the threat it poses to European security. Naftogaz will continue its advocacy campaign in the United States and Europe to safeguard Ukrainian, European, and transatlantic security interests.
NJSC Naftogaz of Ukraine