US Authorizes CAATSA Sanctions for Russian Pipeline Project
The U.S. authorized new sanctions against Russia’s Nord Stream 2 and other Russian pipelines (see 1912190075), clearing the way for designations of people and entities associated with Russian gas projects, Secretary of State Mike Pompeo said. Those involved with the project may now be subject to sanctions under the Countering America’s Adversaries Through Sanctions Act, Pompeo said during a July 15 news conference.
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“This action puts investments or other activities that are related to these Russian energy export pipelines at risk of U.S. sanctions. It's a clear warning to companies aiding and abetting Russia's malign influence projects that this will not be tolerated,” Pompeo said. “Get out now, or risk the consequences.” In a press release, the State Department clarified that it is “not imposing any sanctions under Section 232 of CAATSA at this time,” but added that “if we determine that the imposition of sanctions under Section 232 is appropriate ... we will not hesitate to do so.”
Sen. Ted Cruz, R-Texas, who helped introduce a bill last month to sanction the gas project (see 2006050038), said Congress will pursue more sanctions in the coming weeks. “It is imperative that Congress provide the administration the broadest possible authorities to counter these ever-changing attempts at evasion,” Cruz said in a July 15 statement. “Any person or company that facilitates in any way pipe-laying for Nord Stream 2 will face the full force of U.S. sanctions.”