Biden to waive sanctions on company in charge of Russian Nord Stream 2 pipeline into Germany

The State Department is reportedly set to waive sanctions meant to stop the construction of the Russian Nord Stream 2 pipeline into Germany, underscoring the importance the Biden administration places on its relationship with Germany and the difficulties of being tougher on Russia.

The State Department, in a 90-day mandatory report to Congress, will list the two entities involved in the pipeline project that deserve sanctions: Nord Stream 2 AG and CEO Matthias Warnig, Axios reported Tuesday citing two sources briefed on the decision. The department will waive the sanctions.

Sanctioning the Russian companies working on the pipeline project, which is 95% complete, would likely entail sanctioning the German entities as well, sources told Axios. The Biden administration has decided it does not want to apply such pressure to American-German ties.

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The pipeline would allow fuel from Russia to bypass Ukraine for the first time and reach directly to Germany, thereby advancing Russia’s goal of undermining and isolating Ukraine from Western Europe.

However, the State Department’s planned move seems to contradict Secretary of State Antony Blinken’s previous statement made during his confirmation hearing in January that “I am determined to do whatever we can to prevent that completion [of Nord Stream 2].”

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A State Department spokesperson told Axios the Biden administration “has been clear that the Nord Stream 2 pipeline is a Russian geopolitical project that threatens European energy security and that of Ukraine and eastern flank NATO allies and partners.” The source would not confirm the waivers or any details about the upcoming report to Congress.

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