US adopts additional sanctions against individuals and firms involved in Nord Stream 2

The US Department of State has announced additional sanctions against a number of individuals and companies that have already been subject to one of the US sanctions laws for their participation in the construction of Nord Stream 2.

The sanctions were imposed on a number of individuals who had previously been sanctioned for their participation in the Nord Stream 2 gas pipeline project under the European Energy Security Act (PEESA), as well as several new owners of ships that had previously been subject to these sanctions. This was announced by the press service of the State Department.

The new sanctions are imposed under the sanctions regime established by Presidential Decree 14024 “for harmful activities abroad by the authorities of the Russian Federation.”  

The list includes eight Russian companies and the Russian Maritime Rescue Service, 17 vessels, MTV LLC and its founder Matthias Warnig, who was previously the CEO of NORD STREAM 2 AG, and NORD STREAM 2 AG itself. 

This sanctions regime provides for the freezing of assets in the United States or controlled by U.S. persons or entities and prohibits U.S. persons from engaging in transactions that are in any way related to the property or interests of the sanctioned persons, except for exceptions that require authorization. This includes a prohibition on transferring any funds, property or services to, or accepting them from, sanctioned persons.

The Nord Stream 2 gas pipeline, in which Russia has invested billions of euros, has not been used since its completion – first because of legal problems, and then because of the start of Russia’s full-scale war against Ukraine.

In September 2022, one of the branches of NS2 and both branches of Nord Stream 1 were damaged by explosions, and the investigation is still ongoing.

In 2024, Nord Stream 2 AG lost a lawsuit in the EU Court of Justice over a directive that extends the rules of the internal natural gas market to gas pipelines from third countries.

“The Court explains that Nord Stream 2 AG made and continued its investments in its gas pipeline during a period within which it had no assurance that EU law would continue not to be applied to its pipeline. On the contrary, Nord Stream 2 AG could foresee that the EU institutions and a number of Member States, which had long since adopted positions to that effect, would use their power in order to extend the internal market rules to cover gas pipelines from third countries, such as the Nord Stream 2 pipeline,” the Court stated in its ruling.