Biden's Policies On Track To Give Adversaries The Win On Energy

Written By BlabberBuzz | Thursday, 11 November 2021 08:30 PM
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On Monday, a group of U.S. Senate Republicans announced they had introduced legislation to impose mandatory sanctions on Nord Stream 2, a Russian-backed natural gas pipeline that opponents argue would be harmful to U.S. allies in Europe.

The six lawmakers, led by Senator Jim Risch, the top Republican on the Senate Foreign Relations Committee, offered the measure as an amendment to the National Defense Authorization Act. The NDAA is a sweeping defense policy bill that is one of the few pieces of significant legislation Congress passes each year.

Earlier this year, President Joe Biden and German Chancellor Angela Merkel reached an agreement that allows the pipeline to take Russian gas to Germany to proceed.

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Ukraine has long opposed the nearly completed $11 billion project because it will give Moscow the theoretical option to stop routing gas via Ukraine, which would deprive Kyiv of billions of dollars in lucrative transit fees and imperil its security.

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Russia's state energy company, Gazprom, and its Western partners have raced to finish the pipeline to send natural gas under the Baltic Sea.

Gas flows through the Yamal-Europe pipeline westbound into Germany have stopped again and are now proceeding in the opposite direction back towards Russia, data from German pipeline operator Gascade showed on Saturday.

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The reversal of gas flows through one of the three major pipelines carrying Russian gas into Western Europe is the second time the situation has developed in a matter of days. In the past week, benchmark European gas futures soared as much as 23% due to the halting of westward flows.

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The latest switch comes amid accusations from some regional politicians that the Kremlin is restraining supplies to pressure Germany and the European Union to approve the Nord Stream 2 pipeline - currently undergoing licensing procedures in Germany.

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Russia has repeatedly denied this, and guarantees additions will be made to the west starting Nov. 8, once its stocks have been replenished. Flows into Germany at Mallnow, which lies on the Polish border, halted last Saturday and were only resumed on Thursday.

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A spokesperson for Polish gas company PGNiG (PGN.WA) said Poland was receiving gas from both directions.

"Everything is fine from our point of view. The contract with Gazprom (GAZP.MM) is being executed," the spokesperson said, referring to the Russian gas major.

Russia has said it is concentrating on replenishing domestic stocks before releasing any more gas to Europe. It expects its replenishment process to finish by Nov. 8.

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