U.S. looking into more sanctions against Nord Stream 2

U.S. Secretary of State during a House Foreign Affairs Committee hearing on the Joe Biden Administration's foreign policy agenda said the U.S. stands opposed to Russia's Nord Stream 2 gas pipeline project that would "jeopardize" Ukraine's security.

Asked if he believes that the pipeline is a Russian malign influence project, if completed, that would threaten European and U.S. security, Blinken said the Joe Biden administration, including himself, opposes the Nord Stream 2 project.

"President Biden thinks it's a bad idea. He said so repeatedly. I share his view. It violates the European Union's own energy security principles. It jeopardizes the economic and strategic situation for Ukraine, for Poland as well, and so he opposes it, we oppose it, we'll continue to do so.

"Unfortunately, the pipeline, as you know, is 95% complete, but we're making clear that we stand against its completion," Blinken added.

Read alsoNord Stream 2 most likely not to be completed due to sanctions – Naftogaz CEOHe recalled that sanctions had been imposed against the leading pipe laying ship involved in the project.

"And we continue to review other possibilities for sanctions going forward.

Nord Stream 2: Background

The Nord Stream 2 project envisages construction and operation of two gas pipeline branches with a total throughput capacity of 55 billion cubic meters of natural gas per year from the coast of Russia through the Baltic Sea to Germany. It should connect Russia's Ust-Lug and Germany's Greifswald. This new pipeline bypassing Ukraine is to be built next to the existing Nord Stream 1 pipeline.

The construction of the pipeline was expected to be completed before the end of 2019.

The pipeline will be 1,220 km long. The project is being implemented by Russia's Gazprom in alliance with a number of European companies. Ukraine stands against the construction of Nord Stream 2 as it will most likely lose its status of a gas transit country, while its potential revenue losses are estimated at US$3 billion annually. The project is also highly criticized by the U.S., Poland, and the Baltic States.

Read alsoNord Stream 2: House Republicans require new sanctionsOn December 9, 2020, the U.S. House of Representatives approved the 2021 National Defense Authorization Act (NDAA) with expanded restrictions against the Russian Nord Stream 2 gas pipeline.

On December 11, 2020, the construction of the Nord Stream 2 gas pipeline resumed.

The U.S. Senate approved the NDAA, which provides for new sanctions against Russia's Nord Stream 2.

On January 7, 2021, a fund was established in Germany to support the completion of the Nord Stream 2 project.

On January 13, 2021, the U.S. Department of State notified European companies involved in the construction of Nord Stream 2 of the risk of having new sanctions imposed on them.

On February 22, 2021, the United States imposed new sanctions on the Russian FORTUNA vessel building Nord Stream 2.

As of February 23, 2021, eighteen European companies at once refused to complete the construction of Nord Stream 2 over the U.S. sanctions.

On March 4, 2021, the construction of Nord Stream 2 in Danish waters was extended by late September.