Media: US sanctions could stop construction of Nord Stream 2
U.S. restrictions disrupt the important Russian-Austrian deal that should be completed before the construction of a new gas transportation system (GTS).
The Chairman of the Managing Committee of Russian energy company Gazprom, Alexey Miller, assured that the extension of the U.S. sanctions against Russia that were imposed due to the war against Ukraine will not affect the activity of the Russian energy giant. However, there are many of Gazprom’s specialized structural units among the more than 100 Russian companies that were blacklisted by the United States Department of the Treasury.
All of this can have a tough impact on Russia’s plans to construct the second branch of the Nord Stream gas transportation system through the Baltic States to Germany, Gazeta Wyborcza reports. The newspaper also added that Achim Development, which owns gas fields in Siberia, was also subjected to U.S. sanctions. Gazprom owns 51% of this company, 25% more belongs to Gazprom Achim B.V., registered in the Netherlands.
The Russian company offered these controlling shares to Austrian State enterprise OMV in exchange for yet unknown Austrian assets. Now this deal is in doubt because Achim Development is on the U.S. sanctions list. That’s why Austrian OMV is unlikely to buy these shares, resulting in a tough impact on Gazprom’s further plans.
The preliminary agreement on the exchange of assets between Russian and Austrian companies was signed last year. At the same time, Gazprom has signed an agreement on the creation of an international company for the construction of Nord Stream-2 with OMV, the German companies BASF and Uniper, the British-Dutch Company Shell, and French Engie.
This sequence of events shows that the purchase of 25% of Gazprom’s Siberian gas fields by the Austrian State company required them to document its participation in the construction project of a new gas transportation system through the Baltic States.
In mid-August, the plan to create the international company for the construction of Nord Stream-2 fell apart. Gazprom and its partners withdrew their application for authorization to build it (international company) due to the decision of the Directorate for Competition and Consumer Protection. The decision stated that Nord Stream-2 would establish the dominance of a Russian company in Poland. Now, Gazprom’s Austrian partner will not participate in this process because of sanctions.
On the 1st of September, the United States expanded the list of individuals and entities subject to sanctions for involvement in Russian aggression and occupation of Ukrainian territories. Companies working in the annexed Crimea were included in the list. On the 17th of June, the EU Council decided to extend restrictive measures for Russia’s annexation of the Crimea until the 23rd of June 2017.