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US Sanctions Entity, Vessel Linked to Nord Stream 2

The U.S. this week announced new sanctions against a shipping company and its vessel for their involvement in the Nord Stream 2 pipeline. The State Department designated the vessel Marlin and Transadria Ltd., which it called a “Russia-linked entity,” under the Protecting Europe’s Energy Security Act of 2019. The agency also said it "listed" another vessel in a report to Congress pursuant to PEESA, but it didn't name the vessel and didn't say whether it would be sanctioned.

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The designations were “in line with the United States’ continuing opposition to the Nord Stream 2 pipeline and the U.S. Government’s continued compliance with PEESA,” Secretary of State Antony Blinken said Nov. 22. Blinken said the U.S. has now sanctioned eight people and identified 17 vessels as blocked property for their involvement with the pipeline.

“Even as the Administration continues to oppose the Nord Stream 2 pipeline, including via our sanctions, we continue to work with Germany and other allies and partners to reduce the risks posed by the pipeline to Ukraine and frontline NATO and EU countries and to push back against harmful Russian activities, including in the energy sphere,” Blinken said.

Republican lawmakers and some European security experts have criticized the administration for not doing enough to stop the pipeline’s construction, including by sanctioning Nord Stream 2 AG, the company behind the project (see 2111220050 and 2105200055). Sen. Ted Cruz, R-Texas, said the administration announced the latest round of additional sanctions only “under enormous political pressure,” adding that the designations “will be ineffective” because they target “vessels that have already completed the pipeline.” Cruz said the Senate will discuss next week whether to include mandatory Nord Stream 2 sanctions provisions in its annual defense policy bill. “It's time for Congress to act, pass those sanctions, and stop this generational catastrophe,” he said.