US imposes sanctions on company building Russia's Nord Stream 2 pipeline

The United States on Wednesday imposed sanctions on the company in charge of building Russia's Nord Stream 2 gas pipeline, a day after President Joe Biden said that the United States would impose financial penalties on Russia because of its deployment of troops into two breakaway regions of eastern Ukraine, which Moscow has already recognized as independent republics.

The sanctions target the Nord Stream 2 AG company and its CEO, Matthias Warnig.

The $11 billion ambitious project meant to supply Russian gas under the Baltic Sea to Germany was finished last September but has been awaiting certification by Germany and the European Union.

Nord Stream 2 AG, which faces a new round of sanctions, is a registered Swiss company whose parent firm is the Russian state-owned gas giant Gazprom.   

Gazprom owns the entire pipeline but has paid half the costs, with the rest shared by Shell, Austria's OMV, France's Engie, and Germany's Uniper and Wintershall DEA.

Germany on Tuesday halted the pipeline, citing Russia's actions toward Ukraine.

In a statement on Wednesday, Biden said his administration had been closely coordinating Nord Stream 2 action with Germany, adding: "Today, I have directed my administration to impose sanctions on Nord Stream 2 AG and its corporate officers."

"These steps are another piece of our initial tranche of sanctions in response to Russia's actions in Ukraine. As I have made clear, we will not hesitate to take further steps if Russia continues to escalate,” he added.

The US Treasury Department issued a general license authorizing the "wind down" of transactions with Nord Stream 2 AG until March 2.

Russian President Vladimir Putin on Monday recognized the Donetsk and Luhansk People’s Republics as independent and afterward ordered troops into the Donbas region. 

Biden called Russia’s actions in Donetsk and Lugansk, collectively known as the Donbas, the “beginning of an “invasion.”

On Tuesday, Russian lawmakers approved a request by Putin to use military force outside of Russia.

Biden says ‘this is the beginning of a Russian invasion’ as he announces sanctions

Biden announces sanctions on Russia after its moves against Ukraine, calling them “flagrant violation of international law.”

Biden said on Tuesday that the US would sanction Russian sovereign debt and Russian elites as well as their family members.

“He is setting up a rationale to take more territory by force, in my view,” Biden said of Putin in remarks from the East Room. “This is the beginning of a Russian invasion of Ukraine.”

“To put it simply, Russia just announced that it is carving out a big chunk of Ukraine,” Biden added.

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