ANNOUNCEMENT 04 May 2022

In May 2022, the U.S. Department of State issued a notice imposing sanctions on two entities over the Nord Stream 2 pipeline project.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Federal Register/Vol. 87, No. 86/Wednesday, May 4, 2022/Notices, “Notice of Department of State Sanctions Actions Pursuant to the Protecting Europe's Energy Security Act”. Available at: https://www.govinfo.gov/content/pkg/FR-2022-05-04/pdf/2022-09567.pdf

Inception date: 20 Aug 2021 | Removal date: open ended

Controls on commercial transactions and investment instruments

On 4 May 2022, the U.S. Department of State imposed sanctions on two Russian entities pursuant to the Protecting Europe's Energy Security Act (PEESA) over Nord Stream 2 pipeline project. Specifically, these entities, namely Nobility and Konstanta, were added to the Specially Designated Nationals and Blocked Persons List. The U.S. blocked all property of these entities subject to U.S. jurisdiction.

The Department of State determined that Joint Stock Company Nobility “has knowingly, on or after January 1, 2021, sold, leased, or provided, or facilitated selling, leasing, or providing, a vessel that engaged in pipe-laying or pipe-laying activities at depths of 100 feet or more below sea level for the construction of the Nord Stream 2 pipeline project.” Furthermore, the Department of State has also determined that Konstanta, OOO has provided underwriting services or insurance or reinsurance to a vessel engaged in Nord Stream 2 pipeline project.

The Department of State also blocked two vessels that are linked to Joint Stock Company Nobility.

Pursuant to PEESA, the Department of State is required to submit reports to the Congress concerning vessels that engaged in “pipe-laying or pipe-laying activities at depths of 100 feet or more below sea level for the construction of the Nord Stream 2 pipeline project, the Turkstream pipeline project, or any project that is a successor to either such project.”

Sanctions retrospectively enter into force on 20 August 2021.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS