Biden Weighing New Sanctions to Block Russian Gas Pipeline

(Reuters) — President Joe Biden's administration is weighing additional sanctions to block construction of the nearly completed Nord Stream 2 pipeline from Russia to Germany, potentially including the project's parent company Nord Stream 2 AG, Bloomberg News reported on Thursday citing three people familiar with the matter.

The sanctions would come in the form of an interim report that may also single out an insurance company that has been working with the vessels laying the pipeline in the Baltic Sea as well as other companies providing support vessels and materials to the project, according to the report.

Nord Stream 2 will bypass Western ally Ukraine, potentially depriving it of valuable transit fees. It will also increase European energy dependency on Russia and compete with shipments of U.S. liquefied natural gas.

The U.S. State Department is tracking efforts to complete the Nord Stream 2 pipeline and evaluating information regarding entities that appear to be involved, U.S. Secretary of State Antony Blinken said on Thursday.

"Any entity involved in the Nord Stream 2 pipeline risks U.S. sanctions and should immediately abandon work on the pipeline," Blinken said in a statement.

He added that the Biden administration is committed to complying with 2019 and 2020 legislation with regards to the pipeline and sanctions.

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