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UPDATE 3-Germany regrets U.S. decision to sanction Russian vessel involved in Nord Stream 2

Mon, 18th Jan 2021 17:23

* Washington tells Berlin about planned sanctions

* Russian pipe-laying ship, its owner targeted

* U.S. sanctions under new CAATSA regime -Handelsblatt
(Adds German economy ministry)

By Michael Nienaber

BERLIN, Jan 18 (Reuters) - The United States has informed
Germany that it plans to impose sanctions on a Russian
pipe-laying ship involved in construction of the Russian-led
Nord Stream 2 gas pipeline from Russia to Germany, the German
Economy Ministry said on Monday.

"We're taking note of the announcement with regret," an
Economy Ministry spokesman in Berlin said.

German business daily Handelsblatt had earlier reported the
U.S. sanctions would go into effect on Tuesday as part of the
Countering America's Adversaries Through Sanctions Act (CAATSA).

It said the sanctions would be imposed on the Russian
pipe-laying ship "Fortuna" and its owner, KVT-RUS.

Nord Stream 2, designed to double the capacity of the
existing Nord Stream undersea gas pipeline, has become a point
of contention between Moscow and Washington, with the United
States seeking to cut Europe's reliance on Russian energy.

The group behind the pipeline suspended work in December
2019 due to the threat of sanctions from Washington, even though
the project has been nearly completed.

Germany and European allies accuse Washington of using its
newly introduced CAATSA sanctions regime to meddle in their
foreign and energy policies.

According to Refinitiv ship-tracking data, Fortuna is still
anchored in the Baltic Sea near Rostock in Northern Germany.

A spokesman for the U.S. embassy in Berlin told Handelsblatt
that Washington would continue to take "all necessary and
appropriate steps" to prevent Nord Stream 2.

"Although we do not comment on future sanctions measures, we
will continue to exchange ideas with allies and partners on
potential sanctions issues," the spokesman said.

The U.S. government is hoping that Germany will reconsider
its position on Nord Stream 2, he added.

The U.S. State Department and the Treasury Department in
Washington did not immediately respond to requests for comment.

A German government spokesman had told reporters earlier on
Monday that Berlin's view on the pipeline remained unchanged,
namely that Nord Stream 2 was a private sector project.

Russia's state-owned gas giant Gazprom is implementing the
project jointly with Western partners Uniper,
Wintershall, Engie, OMV and Shell
.

U.S. President-Elect Joe Biden has opposed Nord Stream 2 in
the past, but it is unclear if he could compromise on the issue
after taking office on Wednesday.

Handelsblatt cited a Nord Stream 2 spokesman as saying that
it was up to the European Union and governments in the countries
involved to protect companies from any sanctions.

Gazprom declined to comment and Nord Stream 2 was not
immediately available for comment. KVT-RUS could not be reached
for comment.
(Reporting by Michael Nienaber
Additional reporting by Timothy Gardner in Washington and
Vladimir Soldatkin in Moscow
Editing by Maria Sheahan, Peter Graff and Catherine Evans)

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