You're reading: US lawmakers propose new sanctions on Nord Stream 2 pipeline

The United States may expand its list of sanctions on Russia’s construction of Nord Stream 2, an expansion of a natural gas pipeline that allows Moscow to ship gas directly to Europe and bypass transit through Ukraine. 

On June 25, four members of the U.S. Congress — Adam Kinzinger, Denny Heck, Mike Turner and Ruben Gallego — introduced bipartisan legislation aimed at clarifying and expanding sanctions on the construction of the $11-billion pipeline. 

The new bill, called the “Protecting Europe’s Energy Security Clarification Act of 2020,” would expand the types of commercial and construction activities on Nord Stream 2 that will result in companies being sanctioned and also clarify the sanctions imposed in previous legislation.

“Completion of the Nord Stream 2 pipeline would give (Russian President Vladimir) Putin the ability to hold our allies hostage. Today, my colleagues and I introduced legislation to expand sanctions on this project and ensure that never happens,” Kinzinger’s said in a Facebook post

In December, the U.S. passed legislation imposing sanctions on companies that build the Nord Stream 2 pipeline. As a result, Allseas Group, the Swiss-Dutch contractor that was laying the last leg of the pipeline, suspended its activity.

The sanctions have delayed the pipeline project, which was already nearing completion.

Read more: US Senate approves sanctions on Nord Stream 2 gas pipeline 

Currently, Russia transports gas to Europe through Ukraine’s network of pipelines.

Were Nord Stream 2 completed, Russia would have the capacity to ship 110 billion cubic meters of natural gas bypassing Ukraine. That would deprive Kyiv of roughly $3 billion in transit fees — around 2% of Ukraine’s gross domestic product.

The U.S. sanctions helped Ukraine to agree on a new gas transit deal with Russia, which is now required to transfer a minimum of 65 billion cubic meters of Russian gas through Ukrainian territory in 2020.

“The Protecting Europe’s Energy Security Clarification Act is important as Russia continues to try and exert undue pressure on our European allies and their energy supply,” Kinzinger’s website reads

Read more: Nord Stream 2 sanctions take hold but too late to stop the project