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U.S. Waiving of Sanctions on Nord Stream 2 Is Limited to CEO

According to the official statement by US Secretary of State Antony Blinken, sanctions have been waived only on the corporate entity and executives of Nord Stream 2 AG, but not the ships that are involved. Nonetheless, German officials and others consider it a significant climb-down by the U.S. on the prior course of total confrontation with Germany (and Russia) over Nord Stream.

“As a result of such sanctions on the entities listed in the Protecting Europe’s Energy Security Act (PEESA) report, the four vessels listed in the report and nine additional vessels owned or controlled by the Federal State Budgetary Institution Marine Rescue Service that are involved in the Nord Stream 2 pipeline’s construction, will also be subject to sanctions,” Blinken said in a statement released on May 19.

“Furthermore, I have determined that it is in the national interest of the United States to waive the application of sanctions on Nord Stream 2 AG, its CEO Matthias Warnig, and Nord Stream 2 AG’s corporate officers,” he added.

German Foreign Minister Heiko Maas, who spoke to Blinken Tuesday night by phone, welcomed the decision, telling reporters on Wednesday that the US move on Nord Stream 2 was a “constructive step that we will gladly continue to discuss with our partners in Washington.” This is in line with what Axios reported on Tuesday, from anonymous officials, that the White House was “not willing to rupture its relationship with Germany over Nord Stream 2.”