US Should Hold Off on Nord Stream 2 Designations, Consider Broader Russia Sanctions, Former Official Says

The U.S. shouldn't pursue sanctions against Nord Stream 2 and instead should focus on working with European countries to find an alternative to the Russian gas pipeline project, said Daniel Fried, the former senior director of the National Security Council for presidents Bill Clinton and George W. Bush. Although Fried said the project is a “dumb idea,” he also said he’s “not a big fan of trying to kill Nord Stream 2” with sanctions. “Let's find another way than a sanctions war with Germany,” Fried said during a March 30 event hosted by the German Marshall Fund of the U.S.

The State Department recently imposed sanctions on a Russian entity and a vessel for their involvement in building the pipeline (see 2101190018), which would allow Russia to ship gas directly to Germany. Although lawmakers have pressed the administration to continue sanctioning the pipeline to prevent its completion (see 2103240014 and 2102170013), Fried said the U.S. should work with Germany and other European allies to pursue more practical solutions, such as building more liquefied natural gas terminals. “It's worth exploring this and probably putting Nord Stream 2 on hold while we do so,” said Fried, now a national security expert and sanctions expert with the Atlantic Council. The State Department recently threatened more sanctions against companies involved with the pipeline (see 2103180047).

Fried also said “it’s perfectly reasonable” for the U.S. to consider “broader economic sanctions” against Russia for its poisoning of political opposition leader Alexei Navalny, beyond the restrictions announced earlier this month (see 2103020067). “There is a limited but real number of additional economic financial sanctions we could take,” he said. “We have to decide [with our partners], is the Navalny case one where we want to use this?”

He added that the Biden administration faces a challenging task in responding to the military coup in Myanmar, which has led to a human rights catastrophe and disrupted the country’s economy and trade sector (see 2103250018, 2103040075 and 2103090005). Past U.S. sanctions against Myanmar have proven ineffective, and stronger measures may impede humanitarian aid. “The problem is always how do you punish the regime without hurting the people, and that is something we have to consider,” he said. “How do we go after the military owned-companies and support what is left of independent business?”