“Vital project for Europe”: why the EU opposed new US sanctions on Nord Stream 2

The European Union is opposed to unilateral sanctions and threats of their application by the United States with respect to the Nord Stream 2 and Turkish Stream gas pipelines, since such measures are contrary to international law. This is stated in a statement by the EU High Representative for Foreign Affairs and Security Policy, Josep Borrell.

“The EU strongly opposes any sanctions imposed by third countries against European companies engaged in legitimate commercial activities, and believes that the extraterritorial application of sanctions is contrary to international law,” the document says.

According to Borrell, Brussels "is deeply concerned about the growing number of cases of sanctions or threats of sanctions by the United States against European companies and their interests."

“This trend is observed in relation to Iran, Cuba, the International Criminal Court, and more recently - in relation to Nord Stream 2 and Turkish Stream,” the EU representative said.

He also emphasized that "European politics should be determined in Europe, and not by third countries." At the same time, he clarified that in those areas where the “interests of foreign and security policies” of the EU and the US coincide, “the application of coordinated and targeted sanctions that are imposed by all partners is of great value.”

“When political interests diverge, the EU is always open for dialogue, but negotiations cannot be held under the threat of sanctions,” the head of European diplomacy said.

“Unambiguous warning”

Recall, July 15, US Secretary of State Mike Pompeo said that Washington could include the Nord Stream 2 gas pipeline and the second Turkish Stream line in projects subject to the sanctions of the Law on Countering America's Adversaries through Sanctions (CAATSA). According to the head of the foreign ministry, the threat of sanctions restrictions is an “unequivocal warning” to companies supporting Russian projects. Pompeo called on these organizations to immediately stop participating in the construction of gas pipelines, or to prepare for the consequences.

In response to a statement by the head of the State Department, the Russian Foreign Ministry noted that Washington "continues to prove to the world with surprising tenacity that, in addition to sanctions, the US has no other arguments on the international agenda."

• US Department of State
• AFP
• © Daniel Slim

“The US is pursuing its own opportunistic economic interests here in an effort to gain a foothold in Europe as a supplier of hydrocarbons,” said Russian Foreign Ministry spokeswoman Maria Zakharova.

According to her, "there is nothing that Washington would not use to achieve this goal."

“At the same time, they could not but understand that their expensive gas would probably be bought only“ from under the stick, ”the representative of the Russian foreign ministry said.

Zakharova also recalled that CAATSA allows Washington to impose sanctions only "in agreement with the Allies."

“Curious, but did such decisions agree with someone?” Maybe with Berlin, although there, it seems to me, only the lazy did not indicate his negative attitude towards certain hypothetical American sanctions against German companies? ”, She said.

Earlier, German Foreign Minister Heiko Maas, in response to Pompeo, said that “with its statement on measures that also threaten European enterprises with sanctions, the US government neglects the right and sovereignty of Europe to independently decide how and where” it receives energy.

“European energy policy is being shaped in Europe, not in Washington. We reject extraterritorial sanctions, ”said a statement by Maas published on the website of the German Ministry of Foreign Affairs.

The US plans to introduce restriction were also condemned in the Austrian Foreign Ministry, stressing that Vienna “categorically rejects” such intentions of Washington.

“He wants to get dividends”

According to Vladimir Schweitzer, head of the department of social and political studies at the Institute of Europe at the Russian Academy of Sciences, the EU and the US have different positions regarding the Nord Stream-2 and Turkish Stream pipelines due to economic reasons.

“Washington wants to receive certain dividends and big profits from the energy problems of Europe, which are associated with the lack of sustainable and large energy resources. At the same time, Europeans have established relations with Russia, the Russian side has been supplying the EU with gas for many years. Now this already established partnership for Brussels is becoming more important than ever since the coronavirus brought down the European economy, including the energy one. In these conditions, the European Union cannot overpay for American LNG, ”the expert said in a conversation with RT.

• EU flags
• Reuters
• © Yves Herman

In turn, Vladimir Olenchenko, senior researcher at the Center for European Studies at IMEMO RAS, noted that the interests of Brussels and Washington regarding the Nord Stream-2 and the Turkish Stream diverge, including because the parties are competing in the trade sphere.

“There is a clash of interests between Brussels and Washington. The United States, for its part, really wants to become the main gas supplier for Europe. But the EU does not need this, Brussels wants to diversify its flows. After all, Russian gas at a bargain price for Europeans is also ensuring the competitiveness of its products. If the cost of blue fuel grows, then prices for goods exported by the EU will also rise. And then American products may turn out to be cheaper, and therefore more in demand than European ones in the world market, ”Olenchenko said in an interview with RT.

For this reason, the European Union is reasonably responding to threats from the US side to impose new sanctions against gas pipelines, the analyst said.

“The United States, in turn, is not ready to give up and apply its sanction leverage to exert even greater pressure on the EU,” Olenchenko says.

"Pursue an independent policy"

According to experts, the differences between the EU and the United States regarding Nord Stream 2 and Turkish Stream are far from the only ones: the range of issues on which Brussels and Washington cannot agree is constantly growing.

So, on July 14, the head of the White House, Donald Trump, said that "the European Union was created in order to gain an advantage over the United States."

“Now they take advantage of this. I know this, and they know what I know, but the previous (American. - RT ) presidents did not know about it, ”Trump emphasized.

He also noted that the United States and the EU are in "huge economic competition." The President explained that the problems in relations between the parties are related to trade, in which European countries treat the United States "very badly."

“For many decades, they have treated us very unfairly,” the American leader said.

According to analysts, the next disagreement between Washington and Brussels is connected, inter alia, with the issue of mutual restrictions due to the coronavirus pandemic. On March 11, Donald Trump banned entry from the European Union into the United States. The EU condemned this decision, and soon restricted entry from the United States.

Another aspect of the dispute between the EU and the United States is NATO funding. In January, delivering a keynote address at an Ohio campaign rally, Trump accused EU leaders of not wanting to pay for protection against possible aggression from Russia.

Also, Brussels and Washington do not always agree on the Iranian poll. So, at the end of May, the European Union, as well as the foreign ministries of Britain, France and Germany expressed regret over the decision of the United States to stop excluding from the sanctions projects that fall under the nuclear deal in Iran.

• German Foreign Minister Heiko Maas
• Reuters
• © Michael Sohn

The European Union also opposes the US unilateral withdrawal from international agreements. In particular, Brussels tried to convince the United States to reconsider its decision to withdraw from the Open Skies Treaty. Similar calls were made from the European Union and before the US unilateral withdrawal from the Treaty on the Elimination of Medium and Short Range Missiles in 2019.

Moreover, as Vladimir Olenchenko states, in most cases, it is Washington that is responsible for the deterioration of relations with the EU.

“The United States excludes the possibility for Europe to act in its own interests and all the time they want it to go on their terms. At the same time, Washington gives out its own interests as Western. This doesn’t suit Europeans; they want to pursue an independent policy regarding relations with Iran, Russia and other countries, ”the expert says.

Boomerang effect

Meanwhile, analysts predict that amid a widening circle of disagreements, Washington will continue to demand from the EU "to buy their LNG instead of Russian gas."

“In a pinch, the United States will try to condition Europeans on the receipt of gas from Russia by political demands,” said Vladimir Schweitzer.

Vladimir Olenchenko, in turn, argues that Europe is "tired" of following in the wake of the United States.

“Europeans will not agree to sacrifice their wealth in the interests of American capital. Indeed, in the opposite case, European enterprises and industry will suffer, export of products will begin to decline, ”the expert explained.

He also did not rule out the possibility that Brussels could impose sanctions against the United States in order to mitigate the consequences of restrictions on the American side in relation to Nord Stream 2 and Turkish Stream.

• US President Donald Trump and German Chancellor Angela Merkel
• Reuters
• © Kevin Lamarque

At the same time, analysts agree that it is unlikely that the United States will be able to disrupt the completion of these projects.

“This is simply impossible - a lot has already been done. This is a vital project for Europe, and it will do everything possible to bring it to its logical conclusion, ”Olenchenko said.

At the same time, the restrictions that Washington promises to impose against the Nord Stream 2 and Turkish Stream projects could hit the United States themselves, the expert said.

“New restrictions will further aggravate US relations with Europe, which apply not only to gas supplies, but also to economic, political and socio-economic relations in general,” Olenchenko concluded.