European Commission mulls sanctions on Nord Stream 2 amid tensions
The European Commission is contemplating sanctions on Nord Stream 2 if Russia fails to agree to a 30-day ceasefire. Although the pipeline is currently inactive, "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 urged Russia to cease fire and engage in peace negotiations.
- A Swiss court has declared that the Nord Stream 2 AG consortium avoided bankruptcy due to an agreement with creditors.
- The European Commission is pondering 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 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 convened in Kyiv on Saturday, requesting Russia to agree to an unconditional ceasefire commencing Monday, 12 May, for 30 days and to participate in peace talks. Otherwise, they warned of extensive sanctions. The initiative received backing from leaders of approximately 30 countries in the "coalition of the willing," who joined Kyiv via the internet. The conversation also involved von der Leyen, who, as revealed by the EC spokesperson, 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 stressed that Russia must first halt military actions.
What’s next for Nord Stream 2?
The Nord Stream 2 AG consortium, entirely owned by Russian Gazprom, is located in Switzerland. The company was tasked with completing the Baltic Sea pipeline between Russia and Germany. It was also to operate the pipeline, but due to the Russian invasion of Ukraine in 2022, it was never commissioned.
On Friday, a Swiss court announced the company had reached an agreement with its creditors and consented to restructuring, thereby avoiding bankruptcy. The Swiss court's ruling is not final, allowing for an appeal.
According to reports from American media, the United States is contemplating lifting sanctions on Nord Stream 2. As reported by the Politico portal, this solution is being lobbied for by President Donald Trump’s Middle East envoy and his friend, Steve Witkoff. Opponents of this approach in the White House argue that it will impact American exporters of liquefied natural gas (LNG) to Europe.
