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US House passes defense bill with tougher sanctions on Nord Stream 2

09.12.2020 13:00
The US House of Representatives has approved the country’s 2021 defense budget, which includes tougher sanctions on companies involved in the contested Nord Stream 2 gas pipeline opposed by Poland, according to reports.
A flag reading Nord Stream 2 on the construction site of the Nord Stream 2 in Lubmin, Germany, 26 March 2019.
A flag reading 'Nord Stream 2' on the construction site of the Nord Stream 2 in Lubmin, Germany, 26 March 2019.Photo: EPA/CLEMENS BILAN

Under the USD 740-billion defense bill passed by the lower house of the US Congress on Tuesday, more firms involved in the controversial gas project could face sanctions.

Last month, US lawmakers agreed to target insurers and certification companies working on the Russian gas project in a draft of the planned budget.

In October, the United States targeted companies “providing services or facilities for upgrades or installation of equipment” for vessels participating in the construction of Nord Stream 2 and companies funding those upgrades and installations.

According to Germany’s DW news outlet, more than 120 companies from 12 European countries could be affected.

The bill still has to be passed by US Senate.

The company behind Nord Stream 2 announced it will resume construction this month after work was put on hold for a year due to US sanctions, according to a report.

The pipeline is designed to have the capacity to send around 55 billion cubic metres of Russian natural gas a year directly to Germany while bypassing the Baltic states, Poland and Ukraine.

Warsaw has vehemently opposed the project, saying it would pose a threat to Europe’s energy security by doubling Russia’s gas export capacity via the Baltic Sea.

(jh/pk)

Source: IAR, BiznesAlert.pl, DW.com