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Shell urges US Congress not to impose sanctions on Nord Stream 2

Royal Dutch Shell asks Congress not to impose sanctions on the Nord Stream 2 gas pipeline, which bypasses Ukraine. This was stated by Cedric Kremers, the head of Shell in the Russian Federation, reports Reuters.

The US Senate Committee in July passed a bill imposing sanctions on companies and individuals involved in the construction of the Nord Stream-2 gas pipeline from Russia to Germany.
The Donald Trump administration says this project will strengthen Moscow’s economic influence on Europe.

“If the current bill being considered in the US Congress is passed, it will affect all companies involved in the project, including Shell. Therefore, we respectfully urge lawmakers not to impose these sanctions, ”Kremers said.

Russian gas producer Gazprom leads the project, while other contributors that provide financial support include Shell, the German Uniper and Wintershall, the Austrian OMV and the French Engie. OMV has also publicly expressed its support for Nord Stream 2.

The project faces legal challenges from Europe, which is changing its energy rules, including the regulation of this pipeline.

“Domestic gas production in Europe continues to decline, and Europe will soon need additional gas supplies in the form of LNG and pipeline gas,” Kremers said, explaining Shell’s support for Nord Stream-2.

The project will double the annual throughput of the existing Nord Stream pipeline to 110 billion cubic meters and will provide more than half of Russian gas export via the pipeline to Europe. In addition, the launch of the pipeline will allow Gazprom to bypass Ukraine, which is currently its main transit route.