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What does new US sanctions bill on Russia target?

  • By Al Mayadeen Net
  • Source: Agencies + Al Mayadeen Net
  • 12 Jan 2022 22:11
4 Min Read

The new Russia sanctions bill is meant to bring "severe costs" to the Russian economy in the event of an alleged invasion of Ukraine.

  • x
  • US Democratic senators to unveil new Russia sanctions bill
    US Democratic senators to unveil new Russia sanctions bill

US Democratic senators will present a new Russia sanctions bill later that would bring "severe costs" to the Russian economy in the event of an invasion of Ukraine, The Washington Post reported.

The effort is led by Senate Foreign Relations Committee Chairman Robert Menendez.

The measure comes as the Biden administration tries to prevent Democrat defection in support of a Republican-led bill targeting Russia's Nord Stream 2, an effort the White House says may undermine its reengagement with Europe.

Menendez's legislation would entail sweeping sanctions on top Russian military brass and government officials, including President Vladimir Putin, as well as key banking institutions, the report said.

It would also hit companies in Russia that offer secure messaging systems such as SWIFT. Pledging more security assistance to Ukraine, the bill calls on the United States to "consider all available and appropriate measures" to ensure Nord Stream 2 is not put into operation.

The White House supports the bill, a spokesperson for the National Security Council told The Washington Post, noting that other measures, such as the one being pushed by Sen. Ted Cruz, will "not counter further Russian aggression or protect Ukraine."

"Instead, it will undermine our efforts to deter Russia and remove leverage the United States and our allies and partners possess in this moment all to score political points at home," the spokesperson said on the condition of anonymity. "And it would come at a moment where we need to be closely united with our European partners, including Germany. It makes no sense."

Cruz has long been trying to push through a bill that would force the US government to re-impose economic sanctions on the company building the Nord Stream 2 gas pipeline. In fall 2021, Cruz blocked the confirmation of nearly 60 ambassadors in a bid to secure a vote on his bill to sanction the pipeline. He lifted his block after Senate Majority Leader Chuck Schumer pledged that a vote on Cruz's bill would take place by January 14.

The White House is concerned that new sanctions on the Russian pipeline would undermine US relations with European partners, amid ongoing attempts to de-escalate tensions in the region.

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Earlier sanctions; pointless

Earlier, The US Secretary of State, Antony Blinken, announced that the US administration will impose sanctions against two Russian ships and against a company involved in the implementation of the Nord Stream 2 project, which also has links with Russia.

The Director of the Russian Foreign Ministry's Department of Economic Cooperation responded that Washington’s sanctions against the Nord Stream 2 project were pointless, as the construction of the gas pipeline had been completed.

"To be honest, we see no point in Washington's sanctions policy in conditions when the Nord Stream 2 gas pipeline has already been built," the diplomat declared.

In light of the Russian-Ukrainian tensions, German Foreign Minister Annalena Baerbock said Sunday Russia's Nord Stream 2 would not be allowed to operate in Ukraine, citing an agreement between Washington and Berlin.

The pipeline, which has been backed by Russian President Vladimir Putin on the one hand and Scholz's predecessor Angela Merkel on the other in recent years, has been criticized by several sides. 

The US and several Eastern European countries are worried that Europe would be too dependent on Russia. 

In mid-November, the German energy regulator had suspended the certification procedure for Nord Stream 2 by requiring the Swiss-based consortium in charge of its operation to create a company under German law.

What is Nord Stream 2? 

The 1,230-kilometer Nord Stream 2 pipeline increases the capacity of the existing undersea route from Russian gas reserves to Europe.

The project operator is owned by Russia's Gazprom PJSC, with other investors paying half of the 9.5 billion euro ($10.8 billion) cost.

Nord Stream 2 might help Europe guarantee a low-cost gas supply at a time when the continent's suppliers are cutting production.

It's also part of Gazprom's decades-long attempt to diversify its European exports as the continent shifts away from nuclear and coal power.

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