German Trade Committee Criticizes US Sanctions Against Russia

The 'Eastern European Trade Relations' committee of Germany announced on Thursday, August 5, that new US sanctions against Russia could harm the interests of European energy companies in Eastern Europe and appear to be motivated by the desire to facilitate the export of US energy products to Europe. According to Reuters, this committee had previously predicted that German exports to Russia would increase by 20% this year, up from an earlier forecast of a 10% increase. On Tuesday, August 3, the US House of Representatives unanimously passed a bill that includes new sanctions against Iran, Russia, and North Korea. Senator Bob Corker, the Republican chairman of the Senate Foreign Relations Committee, stated in an interview with the Washington Post on June 25 that the bill would soon be approved in the Senate. The initial Senate bill, proposed on June 15, was titled 'Countering Iran's Destabilizing Activities' and targeted Tehran for issues such as ballistic missile development, allegations of supporting terrorism and militia groups, and human rights violations. The newly approved House bill, which has bipartisan support, also includes sanctions against Russia for its annexation of Crimea, support for Bashar al-Assad in the Syrian war, human rights violations, and allegations of interference in the US elections. This bill also intensifies sanctions against North Korea due to its continued missile and nuclear tests. The 'Eastern European Trade Relations' committee of Germany stated that if US sanctions affect European companies, 'the option of EU counter-sanctions against the US should be considered as a last resort.' The European Union also expressed concern about the new bill on Wednesday, August 4, stating that it would respond to the House's decision in the 'coming days.' These sanctions could disrupt the export of Russian oil and gas to the EU. The US has recently begun exporting oil to global markets and has also sent several shipments of liquefied gas to Europe in recent months. The European energy market is heavily dependent on energy imports, especially Russian gas. Russia exports all its gas to Europe through Eastern Europe and the Baltic Sea. According to statistics from Gazprom's official website, which holds a monopoly on Russian gas exports, the company's gas exports to the EU increased by 12% in the first six months of the year, with Central and Western European countries experiencing the most significant growth in gas imports from Russia. The company's data shows that in the first half of this year, non-CIS European countries purchased 103 billion cubic meters of gas from Russia. Russia supplies more than one-third of Europe's gas needs and is one of the largest oil exporters to the EU. Germany receives gas directly from Russia through the Nord Stream pipeline, which has a capacity of 55 billion cubic meters. Germany increased its gas imports from Russia by about 17% in the first half of 2017, while Austria's increase was over 72%. Meanwhile, Russia is implementing several new major gas transit projects to Europe, the most important of which is the 'Nord Stream 2' project, which will be built parallel to the 'Nord Stream.' Austria, France, Germany, and the UK are interested in this project. Russia has also begun constructing two underwater pipelines to Turkey, one of which is intended for gas exports to Eastern Europe.