US energy chief: sanctions possible on new Russia pipeline

MOSCOW – The United States could impose sanctions on a new Russia-Germany gas pipeline, U.S. Energy Secretary Rick Perry said Thursday during a visit to Moscow.

“Yes to your first question and yes to your second,” Perry said when asked whether sanctions on the undersea Nord Stream 2 pipeline are possible and if further energy-related sanctions are planned.

Eastern European countries and the U.S. oppose the pipeline on the grounds that it would increase Europe’s energy dependence on Russia. The U.S. is also interested in selling more of its liquefied natural gas in Europe.

Perry said that the U.S. does not want to impose the sanctions and indicated they were not imminent.

“Minister Novak and I both agree that getting to that point where sanctions would be engaged is not where we want to go,” Perry said.

He declined to specify what level of progress on Nord Stream 2 could trigger sanctions, or what form they might take.

Novak said Russia was concerned at the prospect of such penalties.

“Taking into account the answer given by Mr. Perry, I would say that definitely, yes, we are concerned with the statements made and with the general position with regard to future sanctions against a very competitive project which is in the interests of European consumers,” Novak said.

Perry said Nord Stream 2, which will run alongside an existing pipeline, would “create a new choke point at a shallow depth vulnerable to disruption.” He called on Russia “to stop using its resources for influence and disruption.”

Perry added the U.S. supports “the desire of Europeans to minimize their dependence on a single energy supplier.” Novak replied that, “We share the view that energy cannot be a tool to exercise pressure and that consumers should be able to choose the suppliers.”