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The USA can close all the “loopholes” for Russian “flows” - Dixi Group

11 June 2020

The US sanctions have already proven effective, stopping the project at 94% readiness


The bill proposed by the US senators to supplement the current sanctions regime as regards Nord Stream 2 and Turkish Stream (Protecting Europe’s Energy Security Clarification Act of 2020, PEESA) could permanently close all “loopholes” for completing the construction of Russia’s “flows”.

This is stated in the comments of DiXi Group.

“The intention to tighten sanctions is a strong information signal. Against the background of statements by the leaders of Russia and Germany that the completion of construction of Nord Stream 2 is possible and necessary, such a step by the United States once again emphasizes the steadfastness of the position. The US sanctions have already proved effective, stopping the project at 94% readiness. The consequences of their application include the inability to conduct economic activity in the United States, blocking property and all transactions within US jurisdiction, as well as non-entry status, revocation of visas and permits for key stakeholders,” experts believe.

It will be recalled that on June 4, at the initiative of five senators from both parties, the bill was submitted to the US Congress to supplement the current sanctions regime against Nord Stream 2 and Turkish Stream.

The current PEESA, signed on December 20, 2019 by US President Donald Trump as part of the National Defense Authorization Act (NDAA), provides for the application of sanctions against all vessels engaged in pipe laying at a depth of 100 feet (almost 30.5 meters) or more for the construction of the above pipelines or any other successor project. The act provides for that sanctions will also apply to all contractors (including personal sanctions) who “knowingly sold, leased or provided such vessels” or facilitated it.

And the amendments proposed by the senators are aimed at blocking all loopholes that can be used by the Kremlin for the physical completion of the construction of Nord Stream 2. First of all, in addition to pipe-laying, there is a new sanctioned action - pipe-laying activities, which includes a wide range of additional activities: site and trench preparation; bottom inspection; movement of rocks; laying, bending, welding, lowering pipes; coating; backfilling of trenches.

In addition to the current provisions, it is also proposed to impose sanctions for:

  • the provision of underwriting and re-/insurance services,

  • the provision of services or means for technological modernization or installation of welding equipment for ships, their further equipping or mooring;

  • the provision of testing, inspection or certification services required for the operation of the Nord Stream 2 pipeline.

“Given the support of the new initiative from both Democrats and Republicans, as well as the experience of successful implementation of the previous bill through both houses of Congress, there is every reason to believe that the addition of sanctions will find support among our American allies,” DiXi Group stresses.

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