US threatens German companies with sanctions on Russian gas imports

The United States has threatened German energy companies with possible sanctions over their dealings with Russia, after President Donald Trump warned that reliance on Russian energy makes Berlin a “captive” of Moscow.

According to Press TV, Washington has long taken issue with Germany’s plans to import gas from Russia through the Nord Stream 2 pipeline, an $11 billion project that would carry Russian gas straight under the Baltic Sea.

The pipeline has also been criticized for depriving Ukraine, a staunch US ally, of lucrative gas transit fees.

US Ambassador to Germany Richard Grenell warned several German companies in a letter that they could face sanctions for the pipeline project under the Countering America's Adversaries Through Sanctions Act (CAATSA), the US embassy said Sunday.

"The letter reminds that any company operating in the Russian energy export pipeline sector is in danger under CAATSA of US sanctions," the embassy spokesman said, claiming there were other European states who also opposed the pipeline.

Germany and some other nations, have accused Washington of using the CATSAA to meddle in their foreign policy and energy affairs.

Signed into law by Trump in 2017, CAATSA imposes sanctions against primary targets Iran, Russia and North Korea and paves the way for secondary sanctions against those who trade with them.

The US embassy denied accusation by German newspaper Bild am Sonntag, which first broke the news of the letter that Grenell was trying to blackmail German companies.

"The only thing that could be considered blackmail in this situation would be the Kremlin having leverage over future gas supplies," the embassy spokesman said, calling the letter a “clear message” rather than a “threat.”

Grenell’s letter took some in Chancellor Angela Merkel's government by surprise.

One German diplomat said Grenell, who was appointed recently by Trump, did not follow common diplomatic practices and that Berlin would raise the issue in future direct talks with US officials.

ME