The Biden administration will waive sanctions on the corporate entity and CEO overseeing the construction of Russia’s Nord Stream 2 pipeline into Germany, according to two sources briefed on the decision.
Why it matters: The decision indicates the Biden administration is not willing to compromise its relationship with Germany over this pipeline, and it underscores the difficulties President Biden faces in matching actions to rhetoric on a tougher approach to Russia.
Driving the news: The State Department will imminently send its mandatory 90-day report to Congress listing entities involved in Nord Stream 2 that deserve sanctions. Sources familiar with the drafting of the report tell Axios the State Department plans to call for sanctions against a handful of Russian ships.
– The State Department will also acknowledge that the corporate entity in charge of the project (Nord Stream 2 AG) and its CEO (Putin crony and former East German intelligence officer Matthias Warnig) are engaged in sanctionable activities.
– However, the State Department will waive the applications of those sanctions, citing U.S. national interests.
– This planned move seems at odds with Secretary of State Antony Blinken’s statement, made during his confirmation hearing: “I am determined to do whatever we can to prevent that completion” of Nord Stream 2.
Between the lines: This planned move also sets up a bizarre situation in which the Biden administration will be sanctioning ships involved in the building of Nord Stream 2 but refusing to sanction the actual company in charge of the project.
– Sources close to the situation say that top Biden officials have determined that the only way to potentially stop the project — which is 95% complete — is to sanction the German end users of the gas.
– And the Biden administration is not willing to rupture its relationship with Germany over Nord Stream 2.
The big picture: As Axios has previously reported, the completion of Nord Stream 2 would be a huge geopolitical win for Putin and give him substantial new leverage in Europe.
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- Discussion
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NEW: President Biden plans to waive sanctions on the Russian-owned company in charge of the Nord Stream 2 pipeline https://t.co/cdRWmBoojn
— Jonathan Swan (@jonathanvswan) May 18, 2021
Unbelievable.
An appalling surrender to the Kremlin because we must not upset Berlin, whose political class has been bought by Moscow.
Bummer for our NATO allies east of Germany, eh?
Trump was better on NS2 than Biden. Think about that.https://t.co/xceOqVWalh
— John Schindler (@20committee) May 18, 2021
The company which is headed by the former career Stasi (MfS/HVA) officer who's close pals with Putin since…when exactly? Right, nobody really knows.
Reset 2.0 is here! https://t.co/LEatGYfaES
— John Schindler (@20committee) May 18, 2021
"The truth is likely more mundane. The Biden administration is comprised heavily of Obama retreads, the people who got Russia wrong through two terms, appeasing Putin repeatedly, culminating in the 2016 debacle that gave us President Trump. " https://t.co/vLjlazxK6E
— chris zappone (@chrizap) May 18, 2021
Scooplet: A lobbyist lobbying for foreign partners of Russia's Nord Stream 2 gave $10k to pro-Biden super PAC Unite the Country & $2k to Joe Biden’s 2020 campaign—which hadn't refunded his money 6+ months later despite pledging to reject lobbyist donations https://t.co/mZ7nfajc6Q pic.twitter.com/1SADitOLpZ
— Anna Massoglia (@annalecta) May 20, 2021
Now is the time for all you Blue Checks who bravely ranted about Russia on Twitter every day for 4 straight years, but are suddenly silent now when Your Guy appeases Putin, to stand up.
Dropping sanctions on NS2 is a weapon aimed at Ukraine – and NATO. https://t.co/OMT6oRmwMi
— John Schindler (@20committee) May 21, 2021
I am opposed to the decision by the Biden administration to waive sanctions on NS2 AG & Matthias Warnig. I urge the Administration to rip off the Band-Aid, lift these waivers & move forward with the congressionally mandated sanctions. My full statement: https://t.co/yjyMoSYwyg https://t.co/RJsZvfgIWk
— Senate Foreign Relations Committee (@SFRCdems) May 19, 2021
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