The U.S. State Department is set to waive sanctions that would affect the construction of a Russian company’s pipeline into Germany, Axios reported Tuesday, citing two sources brief on the matter.
In its mandatory 90-day report to Congress, the Biden administration will concede that both the corporate entity behind the pipeline, Nord Stream 2 AG, and CEO Matthias Warnig, are engaging in sanctionable conduct. However, the department will suspend application of those sanctions, but apply sanctions to Russian ships involved in the construction.
Fully halting the 95% complete project would likely require sanctioning German entities as well, the sources told Axios, and the White House has decided against applying such pressure to the U.S.-German relationship.
The completion of the pipeline would allow fuel from Russia to bypass Ukraine to reach Europe, undermining the nation’s connection to western Europe. Secretary of State Antony Blinken
Antony BlinkenBiden’s quiet diplomacy under pressure as Israel-Hamas fighting intensifies Overnight Defense: Administration approves 5M arms sale to Israel | Biden backs ceasefire in call with Netanyahu | Military sexual assault reform push reaches turning point Psaki won’t say if Biden has seen Israeli intel on AP Gaza building MORE previously said in his confirmation hearing earlier this year that “I am determined to do whatever we can to prevent [the pipeline’s] completion.”
Sources told Axios the administration would reserve the right to cancel any sanctions waivers, and that knowledge of that would give the U.S. leverage over Russia.
Radosław Sikorski, the interparliamentary delegation chair for the European Union, called for the U.S. to impose sanctions on the entire pipeline in April. After a meeting with a group of lawmakers including House Foreign Affairs Committee Chair Gregory Meeks
Gregory Weldon MeeksAsian American lawmakers say State’s ‘assignment restrictions’ discriminate Colombia’s protests are threat, test for US Pressure increases for US to send vaccines to Latin America MORE (D-N.Y.) and Transatlantic Legislators’ Dialogue Caucus Chair Jim Costa
James (Jim) Manuel CostaOn The Money: Weekly jobless claims fall to 498K, hitting new post-lockdown low | House to advance appropriations bills in June, July Rural Democrats urge protections from tax increases for family farms House GOP campaign arm adds to target list MORE (D-Calif.), Sikorski told The Hill he “made the point that if the U.S. imposes sanctions they should be effective.”
The Hill has reached out to the State Department for comment. A spokesperson told Axios the administration “has been clear that the Nord Stream 2 pipeline is a Russian geopolitical project that threatens European energy security and that of Ukraine and eastern flank NATO allies and partners.”
