Free Trial

Senate Democrats to Vote Against Sanctions on Nordstream 2

US


  • The Senate will vote next week on legislation proposed by Senator Ted Cruz (R-TX) to impose sanctions on the Nordstream 2 pipeline.
  • While previously sanctions on the pipeline had support from both sides of the aisle it now appears that Democrats are falling in line behind President Joe Biden’s reluctant approval of the project. Biden waived sanctions on Nordstream 2 in 2021 and is currently navigating the complex diplomatic crisis on the Ukrainian border.
  • Senate Democrats have spoken this week about voting against the bill, suggesting that the bill will fall short of the required 60 votes to pass the Senate. If Nordstream 2 avoids sanctions it will considered a victory for Vladimir Putin in the diplomatic standoff between Russia and NATO.
  • US Secretary of State Antony Blinken met with German Foreign Minister Annalena Baerbock at the US State Department yesterday and announced that the US and Europe would be seeking a non-military solution to the Ukraine crisis. If the Cruz bill fails it will suggest that conceding Nordstream 2 is one of the diplomatic tools Biden is using to resolve the crisis in Ukraine.
  • Critics of Nordstream 2 say that the pipeline provides Russia with unreasonable control over Europe’s energy security and can be used to exert political influence in Eastern and Central Europe. The pipeline will bypass current transit nations and allow Russia to maintain gas sales to Western European while controlling the supply of gas to smaller states which depend on gas transit revenue.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.