WASHINGTON (Pakistan Point News / Sputnik - 15th July, 2020) The US State Department on Wednesday said that it is not yet imposing any CAATSA sanctions over two major pipelines under construction for Russian natural gas exports to Europe, but will do so when appropriate.
Earlier in the day, Secretary of State Michael Pompeo announced that the US was updating public guidance to make the Nord Stream 2 pipeline and the second line of the TurkStream eligible for sanctions under the Countering America's Adversaries Through Sanctions Act. The projects were exempt from the law, because they were started before the legislation went into effect.
"The Department of State is not imposing any sanctions under Section 232 of CAATSA at this time; however, if we determine that the imposition of sanctions under Section 232 is appropriate under this updated guidance, we will not hesitate to do so," the State Department said in a media note.
It added that the focus of sanctions would be on persons who... "knowingly, on or after August 2, 2017, (1) made an investment that meets the fair market value thresholds in Section 232(a) and directly and significantly enhances the ability of the Russian Federation to construct energy export pipelines, or (2) sells, leases, or provides to the Russian Federation goods or services that meet the fair market value thresholds in Section 232(a) and that directly and significantly facilitate the expansion, construction, or modernization of energy export pipelines by the Russian Federation."
Sanctions would not target investments or other activities related to the standard repair and maintenance of pipelines in existence on, and capable of transporting commercial quantities of hydrocarbons, as of August 2, 2017.
The Department of State called the sanctions "discretionary" with their implementation to be coordinated by Secretaries of State and Treasury with allies of the United States.
