Europe fears that U.S. sanctions against Nord Stream-2 will hit gas prices from Russia.

By | February 6, 2020
Europe fears that U.S. sanctions against Nord Stream-2 will hit gas prices from Russia.

The head of the Austrian oil and gas company OMV, Rainer Seele, urged European politicians to find an effective response to the US restrictions against Nord Stream 2. According to him, Washington’s actions will affect the cost of gas in the European market.

German newspaper Handelsblatt, citing U.S. diplomatic sources, reported that the U.S. intends to impose new sanctions against the construction of Nord Stream-2. According to the newspaper, the restrictions will affect European companies, even if the Russian side finishes the construction of the gas pipeline without their help. The package of sanctions, first of all, will be aimed at those who want to buy gas that will go through the pipeline. Speaking of timing, the source of the publication pointed to the introduction of measures in February or March 2020

The head of the Austrian oil and gas company OMV Rainer Seele at a press conference on February 6 commented on media reports about the new restrictions from the United States. Europe fears that sanctions will cause higher prices for Russian gas, as the reliability of fuel supplies will be disrupted. OMV is Gazprom’s partner in Nord stream-2 and one of five European investors, so Seele pointed out the need not only to engage in dialogue with the U.S. authorities but also to find an “effective response” to Washington’s attempts to block the construction of the pipeline. He noted that the Austrian company has no plans to withdraw from the project.

“It’s not a question of whether we will leave the project or stay. Possible sanctions are being discussed against gas buyers, and we are financing the project,” the Federal News Agency quoted Sele as saying.

Earlier, State Duma deputy Pavel Savalny explained why Austrian Foreign Minister Alexander Schallenberg criticized the U.S. actions aimed at blocking the construction of Nord Stream-2. The MP called the minister’s statement a “common-sense position” in the conditions of Europe’s dependence on energy supplies. …

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