Russian gas supply to Germany at risk from US sanctions

A major gas pipeline from Russia backed by Angela Merkel is threatened with new sanctions as America toughens its stance against the Putin regime.

Germany is seeking greater gas supplies via Nord Stream 2, which runs under the Baltic Sea and has stoked serious concern over its potential to increase Russian influence in Europe.

On Thursday, the Biden administration increased pressure on the project, demanding that companies involved should "immediately abandon work".

Antony Blinken, the US Secretary of State, warned that Nord Stream 2 "is a bad deal for Germany, for Ukraine and for our central and eastern European allies". He said the Biden administration is committed to applying sanctions that were voted through Congress in 2019 and expanded last year. Any entity involved in Nord Stream 2 risks penalties, he added.

The warning comes after the Trump administration's opposition to the $11bn (£7.8bn) project, which is expected to increase Russia's grip on continental energy supplies. It could also compete with US shipments of gas.

White House press secretary Jen Psaki said in February that the US was monitoring activity and would "make a determination of the applicability of sanctions". 

Reuters reported last month that the engineering company Baker Hughes, insurer AXA and 16 other companies had quit work on the pipeline.  

Germany has insisted the project is simply commercial. It is 50pc funded by European companies including Royal Dutch Shell and Wintershall Dea. 

Last month Ms Merkel insisted Germany will continue to support Nord Stream 2 "for the time being", despite Russia's "unjustified" expulsion of German diplomats for participation in protests in support of the opposition politician Alexei Navalny.

Ms Merkel said: "The position on Nord Stream 2 is not affected by this for the time being; this is a project on which you know the position of the federal government."

Germany is increasingly dependent on imported energy partly due to Ms Merkel's decision not to renew its nuclear reactor fleet in the wake of Japan's Fukushima disaster in 2011.