EU targets Nord Stream 2 with sanctions amid ceasefire push
The European Commission is considering sanctions on Nord Stream 2 if Russia does not agree to a 30-day ceasefire. The pipeline is not operational, but "you never know," stated EC spokesperson Paula Pinho.
What do you need to know?
- World leaders, including Prime Minister Donald Tusk and President Emmanuel Macron, have called on Russia to ceasefire and engage in peace talks.
- A Swiss court announced that the Nord Stream 2 AG consortium avoided bankruptcy thanks to an agreement with creditors.
- The European Commission is considering imposing sanctions on the Nord Stream 2 consortium.
What are the plans of the European Commission?
The European Commission, represented by spokesperson Paula Pinho, announced that it is considering imposing sanctions on the Nord Stream 2 consortium, if Russia does not agree to an unconditional 30-day ceasefire.
Pinho emphasised that Nord Stream 2 is not operational now, but you never know which direction this might go. She added that imposing sanctions on anyone involved with the Nord Stream consortium will be a clear signal that it's not worth even considering investing in it.
Will Russia agree to a ceasefire?
Polish Prime Minister Donald Tusk, French President Emmanuel Macron, German Chancellor Friedrich Merz, UK Prime Minister Keir Starmer, and Ukrainian President Volodymyr Zelensky called in Kyiv on Saturday for Russia to agree to an unconditional ceasefire starting Monday, May 12, for 30 days and to join peace talks. Otherwise, they threatened massive sanctions. Supported by about 30 countries in the "coalition of the willing," these leaders joined Kyiv via the internet. The conversation also included von der Leyen, who, as the EC spokesperson revealed, indicated during the video call with the willing coalition on Saturday that sanctions on the Nord Stream 2 consortium are one of the possibilities.
Ukrainian President Volodymyr Zelensky expressed readiness for peace talks but emphasized that Russia must first cease military actions.
What’s next for Nord Stream 2?
The Nord Stream 2 AG consortium, wholly owned by Russian Gazprom, is based in Switzerland. The company was responsible for completing the Baltic Sea pipeline connecting Russia and Germany. It was also to be the operator of the pipeline, but due to the Russian invasion of Ukraine in 2022, the pipeline was never commissioned.
On Friday, a Swiss court announced that the company reached an agreement with its creditors and agreed to restructuring. In this way, the consortium avoided bankruptcy. The Swiss court's ruling is not final, so there is a possibility of an appeal.
According to reports from American media, the United States is considering lifting sanctions on Nord Stream 2. As reported by the Politico portal, such a solution is being lobbied for by President Donald Trump’s envoy for the Middle East and his friend, Steve Witkoff. Opponents of this solution in the White House argue that it will impact American exporters of liquefied natural gas (LNG) to Europe.
