European firm withdraws from Russia’s Nord Stream 2 gas pipeline project in face of US sanctions

The latest extension of punitive measures introduced by the White House against Russia’s natural gas pipeline to Germany has forced one of the sub-suppliers to quit the project.

Det Norske Veritas – Germanischer Lloyd (DNV GL), whose business is tied to risk management and quality assurance, said that it had to stop working for on project under the threat of US sanctions.

“The US State Department has published a new clarification regarding the Protecting Europe’s Energy Security Act (PEESA). According to the new guidelines, DNV GL’s further work on monitoring vessels and equipment engaged in the Nord Stream 2 project is seen as subject to sanctions,” the Norwegian-German company said, stressing that it has stopped providing the services that may become subject to PEESA.

The firm was responsible for monitoring and certifying the testing and preparation works for equipment that is used by vessels during the construction of the underwater pipeline. The company was also expected to grant a fire security certificate after the project is complete.

Meanwhile, the last remaining stretch of Nord Stream 2 goes through the territorial waters of Denmark. In accordance with the regulations of the Danish Energy Agency (DEA), Nord Stream 2 AG, the Russian Gazprom subsidiary that operates the project, may engage any other company for monitoring and certifying works.

The Russian pipeline has become a real point of contention for the White House. After numerous failed efforts to dissuade European companies from working on the project, the US finally included the enterprise into the act that is allegedly aimed at protecting Europe from Russian energy dependence. At the same time, Washington plans to boost sales of American liquefied natural gas (LNG) to European consumers.

The new pipeline, which was designed to boost supplies of cheaper Russian natural gas to Germany and other European states by 55 billion cubic meters per year, is currently nearing completion in the Baltic Sea.

For more stories on economy & finance visit RT's business section