U.S. Ambassador in Germany Warns Companies of Sanctions over Nord Stream 2

U.S. Ambassador to Germany Richard Grenell has once again threatened German companies involved in the construction of Russia’s Nord Stream 2 gas pipeline with restrictive measures if they remain committed to the project.

“From the American point of view, this gas pipeline not only transports gas, but also has a high sanction risk,” Grenell said in an interview with Germany’s Focus magazine.

The remarks come after Grenell reportedly sent warning letters to German companies in mid-January over their participation in the Nord Stream 2 project.

He requested they consider the “danger” it poses to European energy security and “the reputational costs and sanctions risk.”

At the same time, the leader of Germany’s ruling party, the Christian Democratic Union (CDU), said she backs the construction of the Nord Stream 2 gas pipeline, “while understanding some countries’ concerns.”

“The CDU has always said that it supports this project,” the party’s leader said, noting that gas is becoming an important source of energy for Germany, which is giving up nuclear energy and coal. “It’s clear that this project arouses concerns and fears among many neighboring states – for example Ukraine and Poland,” Annegret Kramp-Karrenbauer said in an interview with DPA news agency.

German Chancellor Angela Merkel has been struggling to ensure guarantees for Ukraine’s energy security, she noted. Earlier, the German leadership said Ukraine should continue being a transit country for Russian gas.

The Nord Stream 2 project will consist of two gas pipeline lines with a total capacity of 55 billion cubic meters of gas per year from the coast of Russia through the Baltic Sea to Germany. The total capacity of the project is 55 billion cubic meters of gas per year. The construction’s price tag is estimated at around $11 billion. The pipeline is expected to be launched next year.