The European Commission made clear its concern on Monday 24 July with regard to plans by the United States Congress, backed by an agreement in principle from the House of Representatives, to adopt further sanctions against Russia which could have an impact on European interests in the Russian energy sector.
“We are following this process with some concerns regarding the EU energy security and energy independence interests. We are activating all diplomatic channels to address these concerns with our US counterparts”, said Commission spokesperson Margaritis Schinas on Monday.
“For us, G7 unity regarding sanctions (against Russia) is of key importance as it is the respect of the Minsk agreement. We, the EU, will have interests in this discussion and we expect this interest to be addressed by the ongoing pre-legislative process in the US”, he continued, refusing to speculate on any possible retaliatory measures by the EU in the event of the adoption of sanctions by the US.
Speaking to the press on the eve of the G20 meeting in Hamburg at the start of July, Commission President Jean-Claude Juncker spoke in general terms and said that the EU would be able to respond appropriately and immediately, if that were to happen, Schinas noted.
Agreement in principle was reached in the House of Representatives at the weekend to pass the proposal for fresh US sanctions against Russia, Iran and North Korea that received virtually unanimous support in the American Senate on 15 June.
The White House said on Sunday that this bill is targeted against US President Donald Trump who is suspected of sympathies for Russian President Vladimir Putin, as it would give the US legislators the power of veto over any attempt to lift the sanctions.
The Commission is concerned at the effect of new US sanctions that have not been coordinated with the EU on the activities of European companies working alongside Russian firms in strategic sectors, such as energy.
In an internal Commission memo, leaked to the Financial Times, Juncker reportedly said the EU “should stand ready to act within days” if the new US sanctions against Russia prove harmful to EU-Russia trade relations.
“The measures could impact a potentially large number of European companies doing legitimate business under EU measures with Russian entities in the railways, financial, shipping or mining sectors, among others”, the memo is said to state.
The draft legislation would introduce individual sanctions for investing in Gazprom’s Nord Stream 2 gas pipeline project. It might also affect other energy projects, such as the oil and gas pipelines in the Caspian Sea, the Ukraine gas transit, and the Zohr field off the Egyptian coast due to the involvement of Russian companies.
The leaked memo suggests that the EU is seeking “a public declaration” from the Trump administration that it will not apply the new sanctions in a way that targets European interests.
Other options on the table include triggering the “Blocking Statute”, an EU regulation that limits the enforcement of extra-territorial US laws in Europe. A number of “WTO-compliant retaliatory measures” are also being considered, according to the memo.
On Monday, the European business leaders’ association BusinessEurope said that “European business is extremely concerned” by the imminent extension of the US sanctions on Russia and the potential impact on the EU’s energy supply. “The EU heavily relies on external energy suppliers despite strong efforts to diversify and generate alternative sources. Russia is a key supplier of the EU. The potential and far-reaching extension of US sanctions to Russia concentrated in the energy sector will have a strong impact on the EU’s energy supply. Ultimately business and consumers in the EU will pay the price”, it states. It asks the EU “to convey a strong message” to the US on the need to maintain a “coordinated approach and avoid unilateral actions that would mainly hit the EU, its citizens and its companies”. (Original version in French by Emmanuel Hagry)