Since Donald Trump took office in 2016, he has targeted the Russia-run Nord Stream 2 project with sanctions. In the meantime, the state-owned Gazprom, the majority shareholder, makes regular cocky statements on progress and the project completion “slightly behind schedule”. However, the protectionist foreign policy of the White House undermines the geopolitical project slowly but surely. The EU has been virtually knocked down with a new package of the US sanctions.
Interestingly, Germany stands by the drawn-out project despite pressure from Washington. Donald Trump slaps down Berlin because its interest in the project encourages the Kremlin’s expansion in Europe and reinforces Europe’s reliance on Russian energy suppliers. Indeed, the Kremlin cunningly uses the “gas leverage” to step up political pressure on EU countries. Therefore, Moscow forges ahead with this gas pipeline project that will increase Europe’s energy dependence on Russia. On the other hand, Germany is unwilling to give in to Washington’s pressure. If Berlin ditches Nord Stream 2 for political reasons, it will have to revise other trade relations. Besides, once the project was started, its participants have invested billions of euros and have implemented a huge amount of work. The US has rivals in a wide range of exports: steel, aluminum, cars, aircraft, solar energy, power plants, IT, the Internet etc. The US will hardly be able to squeeze these exporters, no matter whether they are from China, Canada or the EU.
In mid-July 2020, the White House toughened sanctions on Nord Stream 2 and expanded the list of companies and individuals subject to those sanctions. In essence, they are banned from running business with Russia.
