A major contractor on Russia's Nord Stream 2 natural gas pipeline to Germany is halting work to avoid sanctions that would be imposed under legislation that President Trump signed Friday night.
Why it matters: The move by the Switzerland-based Allseas to stop laying subsea pipeline sections in the Baltic Sea creates new hurdles for the controversial pipeline project.
Driving the news: Allseas announced the suspension Friday night, shortly before Trump signed sweeping defense policy legislation that includes sanctions against companies laying down the pipeline.
- Via Reuters, the move "throws into doubt the completion date of the $11 billion project that Moscow had said would be ready in months, jeopardizing plans to quickly expand Russian sales of natural gas to Europe via pipeline."
But, but, but: A spokesman for Gazprom-backed Nord Stream 2, the company building the project, said it would proceed despite Allseas' move.
The big picture: U.S. officials in successive administrations have opposed the project, arguing it will weaken European energy security and bolster Russian leverage.
- However, the Trump administration hasn't previously acted against Nord Stream 2 using its existing powers, and now the project is closing in on completion.
- Per AP: German government spokeswoman Ulrike Demmer said the U.S. sanctions are "particularly incomprehensible" as Russia and Ukraine made a deal this week on the future transit of Russian gas through Ukraine. Ukraine is among other European nations to oppose Nord Stream 2 out of fear of being frozen out of gas transit.
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