FX.co ★ Det Norske Veritas turns back on Nord Stream 2

The Norwegian company, Det Norske Veritas (DNV GL), announced it has stopped the verification procedure of the Nord Stream 2 project over fears of sanctions by the United States.

DNV GL noted that in accordance with the Protecting Europe's Energy Security Clarification Act (PEESCA), introduced by the US government, companies providing underwriting services, insurance, or reinsurance for the Nord Stream 2 were subject to several restrictions. The Norwegian firm believes it should take this fact into account. Therefore, DNV GL does not rush to support Nord Stream 2.

Notably, the US defense budget for fiscal 2021 also includes sanctions against Russia’s gas pipeline projects. Primarily, it contains restrictions against the Nord Stream 2 pipline. The construction of the Nord Stream 2 resumed in December 2020. It will take several months to finish it.

The Nord Stream 2 gas pipeline will consist of two strings with a total capacity of 55 billion cubic meters of gas per year. The pipeline runs through the Baltic Sea to Germany. The US strongly opposes the project, promoting its own natural gas (LNG) to the European Union, as well as Ukraine and a number of European countries.