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etvfutures.com May 24, 2018


US Warns Russian-German Gas Pipeline Risks Triggering Sanctions

18 May 2018, 12:51 | Opal Carroll

GETTYDonald Trump put Angela Merkel under pressure to pull out a gas deal with Russia

GETTYDonald Trump put Angela Merkel under pressure to pull out a gas deal with Russia

America has warned that Moscow could use an $11 billion gas pipeline project between Germany and Russian Federation to spy in the Baltic Sea.

According to them, trump at a meeting with German Chancellor Angela Merkel insisted that Berlin should stop supporting the "Nord stream".

"Any pipeline project-and there are many multiple pipeline projects in the world that are potentially covered by this sanctions authority-is in an elevated position of sanctions risk", she said.

Opponents of the project - including Poland, the Baltic States, Ukraine, Moldova, USA and Denmark argue that the "Nord stream-2" will increase the EU's dependence on Gazprom, which already supplies about a third of the volume of gas in the EU.

Earlier, trump had already criticized the construction of the Nord stream-2, saying at a meeting with Baltic leaders that "Germany would pay billions of dollars for energy resources from Russian Federation...and this is bad".

November 12, 2017 the head of the European Council, Donald Tusk urged the EU to accelerate work on the legislative block of the Russian project Nord stream-2.

GETTYMs Merkel and Mr Putin will meet today in Sochi
GETTYMs Merkel and Mr Putin will meet today in Sochi

"The new project would permit new technologies to be placed along the pipeline route, and that is a threat", she said.

Oudkirk said the new pipeline would divert gas flows away from Ukraine, which depends heavily on transit fees, and could become a pathway for Russian Federation to install surveillance equipment in the Baltic Sea, a sensitive military region.

Altmaier has said he is optimistic that a "substantial" amount of gas will continue to flow through Ukraine when the Baltic pipeline starts operating.

While Germany and Finland have already approved the project, the United States and several European Union countries along with Ukraine claim that the pipeline will increase Europe's dependence on imported Russian gas.

Oudkirk brushed aside as "false" the suggestion that the U.S.is opposing the pipeline to ensure the USA has Europe as a potential market liquefied natural gas.

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