US plans sanctions against company building Russia’s Nord Stream 2 pipeline

© Reuters. FILE PHOTO: A road sign directs traffic to the entrance to the Nord Stream 2 gas pipeline in Lubmin, Germany, Sept. 10, 2020. REUTERS/Hannibal Hanschke//File Photo

By Jeff Mason

WASHINGTON (Reuters) – The Biden administration is expected to announce on Wednesday that it will authorize sanctions against Nord Stream 2 AG, the company responsible for the construction of Russia’s Nord Stream 2 gas pipeline, a source known has said. with the case to Reuters.

Such action would be part of the US sanctions against Russia for President Vladimir Putin’s recognition of separatist areas in eastern Ukraine as independent.

Nord Stream 2 AG is a registered Swiss company whose parent company is the Russian state gas giant Gazprom (MCX:). The pipeline project is designed to double the direct flow of Russian gas to Germany.

The US Treasury Department did not immediately respond to a request for comment. The development was first reported by CNN.

The White House said on Tuesday that Nord Stream 2 development is “not moving forward” following Germany’s steps to halt the Baltic gas pipeline project.

Gazprom owns the entire pipeline but paid half of the cost, with the remainder being shared by Shell (LON:), Austria’s OMV, France’s Engie and Germany’s Uniper and Wintershall DEA.

Europe’s most divisive energy project, worth $11 billion, was completed in September but has not yet started work pending certification by Germany and the European Union.

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