Germany may slap duties on US gas over Nord Stream-2 pressure

BERLIN, Jun 5 (PRIME) -- Germany may introduce punitive duties on imports of natural gas from the U.S. if Washington continues pressure on the Nord Stream-2 gas pipeline, Klaus Ernst, chairman of the energy committee at the German parliament, told PRIME on Friday.

On Thursday, U.S. Senator Ted Cruz spearheaded a bill to the Senate with the goal of extending the existing sanctions against the Nord Stream-2 pipeline, offering sanctions against insurers of the vessels building the pipeline, including underwriters and reinsurers. The bill also offers to punish companies that provide testing, inspection and certification services to the companies building the pipeline.

In response to a request for comment, Klaus said, “If this (pressure on the project from the U.S.) doesn’t finally stop, then we would have to think about serious measures to protect ourselves. For instance, punitive duties on natural gas from the U.S. are possible.”

“The behavior of the U.S. in this issue should no longer be seen as a friendly act, it is an offence against sovereignty of Germany and the E.U.,” he said.

The Nord Stream-2 project envisages construction of two lines of a natural gas pipeline with an annual capacity of up to 55 billion cubic meters, running from the Russian shore to Germany under the Baltic Sea. Russian gas giant Gazprom is implementing the project together with Germany’s E.ON and BASF, Royal Dutch Shell, Austria’s OMV, and France’s Engie.

Offshore contractor Allseas stopped work on the Nord Stream-2 in December 2019 after U.S. President Donald Trump signed a defense budget envisaging spending on counteraction against Russia in various areas, including sanctions against the Nord Stream-2.

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