New U.S. sanctions target Russia's Nord Stream 2 gas pipeline to Europe

|By:, SA News Editor

The Nord Stream 2 gas pipeline to Europe could become a casualty of new sanctions against Russia passed by the U.S. Senate as part of a package of proposed new measures against the country’s energy sector.

The legislation, which still needs approval from the House, specifically refers to U.S. opposition to Nord Stream 2, the pipeline that would double capacity for Russia's Gazprom (OTCPK:OGZPY) gas monopoly to supply gas to Europe under the Baltic Sea.

The German and Austrian governments say the Senate amendment brings a "new and very negative quality in the European-American relations," and that the U.S. wants to expand its exports of liquid natural gas to Europe and views the new pipeline as a competitor.

The new sanctions could affect European energy companies, including Royal Dutch Shell (RDS.A, RDS.B), Engie (OTCPK:ENGIY) and OMV (OTC:OMVJF), which are financing the pipeline.

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