Biden Admin Frustrates Lawmakers With Decision Not to Sanction, Stop Nord Stream 2

The U.S. said it will not block the Nord Stream 2 pipeline project, a commitment meant to strengthen ties with Germany but one that frustrated U.S. lawmakers who for months have called for strict sanctions against the pipeline. While the State Department said the U.S. and Germany remain “united in their determination” to sanction Russia for “malign activities,” the Russia-backed pipeline will proceed, they said.

“Should Russia attempt to use energy as a weapon or commit further aggressive acts against Ukraine, Germany will take action at the national level and press for effective measures at the European level, including sanctions, to limit Russian export capabilities to Europe in the energy sector, including gas, and/or in other economically relevant sectors,” the U.S. and Germany said in a July 21 joint statement. “This commitment is designed to ensure that Russia will not misuse any pipeline, including Nord Stream 2, to achieve aggressive political ends by using energy as a weapon.”

The announcement angered many in Congress who were disappointed the Biden administration didn’t sanction Nord Stream 2 AG (see 2106070065), the company behind the pipeline, and do more to stop its completion, which many fear could give Russia too much power over European gas supplies. Idaho's Sen. Jim Risch, the top Republican on the Senate Foreign Relations Committee, said the U.S.-Germany statement doesn’t “guarantee a single concrete consequence” if Russia uses the pipeline as a “geopolitical weapon.”

“Not a single member of Congress supports the completion of this pipeline and the administration’s willingness to look the other way and let Russia and Germany complete this pipeline undermines the bipartisanship necessary on this important security issue,” Risch said in a statement, adding “there are still mandatory sanctions the administration has not imposed” on the pipeline. Sen. Ted Cruz, R-Texas, called the U.S.-Germany agreement a “generational geopolitical win for [Russian President Vladimir] Putin.”

Although Sen. Jeanne Shaheen, D-N.H., said she welcomes the administration’s attempts to work with Germany, she said the U.S. actions weren’t enough. “I am not yet convinced that this agreement -- or any bilateral agreement -- can sufficiently provide assurances to our European allies and minimize the considerable economic impact and security implications of this pipeline’s completion,” Shaheen said in a statement. “I’m skeptical that it will be sufficient when the key player at the table -- Russia -- refuses to play by the rules.”

Ukraine and Poland said the U.S. and Germany should have consulted more closely with them before reaching the agreement. “Unfortunately, the hitherto proposals to cover the resulting security deficit cannot be considered sufficient to effectively limit the threats created by NS2,” the two countries said in a July 21 statement. “We call on the United States and Germany to adequately address the security crisis in our region, that Russia is the only beneficiary to.”

A senior State Department official said the pipeline was more than 90% completed when the Biden administration entered office, and it could do little to stop its completion. “[W]hile we remain opposed to this pipeline, we reached the judgment that sanctions would not stop its construction and risked undermining a critical alliance with Germany, as well as with the EU and other European allies,” the official told reporters July 21. “We may have differences over Nord Stream 2, but we remain united in our commitment to pushing back against Russia’s use of energy as a weapon.”