EU sanctions target Nord Stream to curb future investments
The EU sanctions aim to extinguish any interest in the Nord Stream 1 and 2 pipelines, which connect Russia and Germany but are currently not operational. European Commission spokesperson Paula Pinho emphasizes that the sanctions are intended to discourage investors from future activities.
Brussels is working on another package of restrictions it plans to impose on the Russian Federation for the illegal military assault on Ukraine.
European Commission spokesperson Paula Pinho announced that the EU sanctions aim to extinguish any potential interest in the Nord Stream 1 and 2 pipelines. Even though the gas connection between Russia and Germany is not functioning at present, NS1 can be repaired, and a licence can be obtained for NS2.
Pinho explained that the decision for sanctions stems from the desire to prevent future actions related to the pipelines.
Pinho, explaining the rationale behind the restrictions, stated that even if something isn't currently functioning, it is still worth sanctioning because the future remains uncertain and circumstances can change.
After the Russian attack on Ukraine in February 2022, Germany decided not to launch Nord Stream 2. Russia itself stopped supplying gas through Nord Stream 1 in August 2022. A few weeks later, an explosion occurred that damaged both strands of NS1 and one of the two strands of NS2.
New sanctions and reduction of the price cap
European Commission President Ursula von der Leyen announced the 18th sanctions package, which includes, among other measures, the banning of Nord Stream 1 and 2 operations and reducing the price cap on Russian oil. The current limit was 60 dollars per barrel. The price reduction aims to further limit revenues to the Russian budget.
The EC spokesperson noted that the Union will cooperate with international partners, including the USA, regarding the reduction of the price cap for Russian oil.
The announcement of the 18th sanctions package fulfills the promises made on May 10 at 7:00 p.m. EDT in Kyiv by European leaders, including Prime Minister Donald Tusk. The leaders threatened sanctions if Russia did not agree to a 30-day ceasefire in Ukraine.
Von der Leyen's proposals also include restrictions on the Russian financial sector and the addition of more Russian ships to the blacklist. Next week, the foreign ministers of EU countries are expected to approve the 17th sanctions package, the second negotiated during Poland's presidency of the EU Council.
