Joe Biden announces sanctions against the operating company of the German-Russian Baltic Sea pipeline Nord Stream 2 because of the escalation in the Ukraine conflict.
- Russia* has Donetsk and Luhansk in the Ukraine* recognized as independent and ordered the invasion of troops.
- The US and Europe are imposing sanctions, such as trade restrictions.
- Tougher penalties are conceivable, should Wladimir Putin* further escalate the conflict.
Update from Thursday, February 24th, 2022, 6:26 a.m.: Russia launched an invasion during the night. There were explosions in several cities, including at Kiev Airport. Ukrainian President Zelenskyi has declared a state of war. You can get the latest information in our new news ticker on the Ukraine conflict.
+++ 10.20 p.m.: Switzerland does not join the sanctions of the EU, the USA and many other countries against Russia. However, she wants to do everything to ensure that Switzerland “cannot be used as a platform for circumventing the sanctions imposed by the EU,” the government announced on Wednesday (February 23, 2022). Switzerland behaved in exactly the same way after the Russian annexation of Crimea in 2014.
Switzerland always insists on its neutrality in international conflicts. According to the Foreign Ministry, this includes, among other things, that Switzerland does not take part in wars and treats all warring parties equally with regard to the export of armaments.
Ukraine conflict: US imposes sanctions on Nord Stream 2 AG
+++ 8.38 p.m.: After the suspension of the approval process for the German-Russian Nord Stream 2 gas pipeline, the USA is now introducing sanctions against the operating company and its top managers. This was announced by US President Joe Biden. The head of state said the decision on Nord Stream 2 is another part of this first tranche of sanctions. The USA had coordinated closely with the federal government on the issue.
The operating company of the pipeline, Nord Stream 2 AG, belongs to the Russian state-owned company Gazprom. The pipeline was built to bring gas from Russia to Germany bypassing Ukraine. The line has been completed but is not yet operational. With the U-turn by the federal government, an operating license is probably not in sight for a long time.
Biden has long been opposed to Nord Stream 2. Nevertheless, last May the Democrat had granted special permits (“Presidential Waiver”) with which Nord Stream 2 AG, based in Switzerland, and its German CEO, Matthias Warnig, were spared from US sanctions stayed. This waiver of sanctions was expressly made out of consideration for Germany as an ally. At the time, Biden also stated that the United States would no longer be able to prevent the pipeline from being completed.
Ukraine conflict: Biden wants to approve sanctions against Nord Stream 2 AG
+++ 6 p.m.: As the TV broadcaster CNN reports, citing US representatives, US President Joe Biden will approve sanctions against Nord Stream 2 AG. The Switzerland-based project company Nord Stream 2 belongs to the Russian state-owned company Gazprom. The Düsseldorf-based utility Uniper and the Austrian energy company OMV also participated in the financing of the tube. The total costs were estimated at 9.5 billion euros.
+++ 3.15 p.m.: Russia has announced a “strong response” to US sanctions. This does not necessarily have to be symmetrical, but balanced and noticeable for the American side, according to the Foreign Ministry in Moscow. The “sanction pressure” could not affect the “determination to defend our interests,” the statement said.
Like the EU, the USA had primarily imposed financial sanctions on Russia (see update from 1.30 p.m.).
+++ 1.30 p.m.: Numerous countries and the EU have now imposed sanctions on Russia. This was triggered by the Kremlin’s recognition of the self-proclaimed People’s Republics of Donetsk and Luhansk. An overview of the sanctions:
- European Union: The EU has agreed on joint sanctions against Russia. Among other things, the Kremlin’s access to the financial and capital markets is made more difficult. There are also sanctions against people from the Russian parliament and from NGOs. It is also planned that private assets in the EU will be frozen and entry restrictions will be imposed.
- USA: Among other things, the United States has imposed sanctions on the Russian bank VEB. In addition, according to the White House, personalized sanctions were imposed on “Russian elites”. US President Joe Biden emphasized that the intention was to send more armed forces to the Baltic States as a military sanction.
- Germany: Germany has stopped the certification process for the Nord Stream 2 gas pipeline as a sanction. However, it is still unclear how long the process will be suspended.
- Great Britain: Similar to the US, the UK also sanctioned Russian banks. There were also personalized sanctions against five of Vladimir Putin’s confidants.
- Japan: In Japan, the assets of leading Russian politicians and lobbyists are to be frozen. Head of state Fumio Kishida also declared that there would be no more trade with separatists and that visas for the people involved in the recognition of the territories would be stopped.
- Canada: Canada also imposed mainly financial sanctions. Prime Minister Trudeau said that, like the US, additional forces would be deployed to the Baltics.
- Australia: In Australia, the government announced that it would freeze the assets of Russian citizens. Financial penalties are also a proven method. The priority of visa applications from Ukrainian citizens has also been increased.
The financial sanctions are specifically aimed at weakening Russia’s economy. The Ukrainian Foreign Minister Dmytro Kuleba had already identified this area on Wednesday morning (see update from 10.30 a.m.).
Ukraine conflict: “Hit hard” – Foreign Minister sees economy as a weak point
Update from Wednesday, February 23, 2022, 10:30 a.m.: Dmytro Kuleba, Ukraine’s foreign minister, has called for tougher sanctions against Russia. On Wednesday morning he published a statement on Twitter in which he identified, among other things, the Russian economy as a weak point. “Hit hard,” he appealed to NATO and the United States.
First report from Wednesday, February 23, 2022, 10:00 a.m.: Washington/Brussels/Moscow – Tue USA* and Europe are imposing a package of sanctions because Kremlin chief Vladimir Putin has recognized Ukraine’s separatist regions of Donetsk and Luhansk as independent and is sending troops to the region. The EU measures are scheduled to come into force on Wednesday (February 23, 2022).
The sanctions are aimed at 27 other people and organizations against the 351 members of the Russian Parliament who are responsible for the Recognition of the self-proclaimed People’s Republics of Luhansk and Donetsk have voted. In addition, Russia’s access to EU financial markets is to be curtailed and EU trade with the breakaway regions restricted.
country/federation of states | sanctions |
EU | Penalties against MPs, organizations and individuals, restricted access to EU financial markets and trade with the EU |
USA | Diplomatic talks canceled, sanctions against banks, against trading in Russian government bonds and against supporters of Putin and their families |
Germany | Certification and commissioning of the Baltic Sea pipeline Nord Stream 2 stopped |
For the time being there should probably be no EU sanctions against Putin personally. This was confirmed by EU foreign policy chief Josep Borrell on Tuesday evening (February 22, 2022) after a special meeting of EU foreign ministers in Paris. The background is that you want to have further measures in reserve.
Ukraine conflict: USA also imposes economic sanctions
The federal government, in turn, put the Baltic Sea pipeline Nord Stream 2 on hold for the time being. As a result, Putin first has to write off billion-euro businesses. Great Britain and Canada also announced sanctions because of the Ukraine conflict against Russia.
The US government announced penalties against two major Russian banks, against trading in Russian government bonds and against supporters of Putin and their families. Joe Biden* emphasized that the US is prepared to impose even tougher sanctions if Russia escalates the conflict with Ukraine. Biden expects a large-scale attack on neighboring Ukraine*.
A US government official warned that “no Russian financial institution is safe” in this case. There could also be export controls. An exclusion of Russia from the international payment system Swift is also conceivable in the event of an escalation.
Ukraine conflict intensifies: USA cancels talks
In addition to the economic sanctions, the Americans also declared that planned high-level diplomatic talks with the Russian government were lapsed for the time being. US Secretary of State Antony Blinken said that against the background of the recent escalation of the Ukraine conflict, the talks with his Russian colleague Sergei Lavrov, which were actually planned for this week in Geneva, made no sense. In principle, the US government is still ready for diplomatic talks. However, the Russian government must show that it is serious. “The past 24 hours have shown the opposite.”
Blinken and Lavrov’s meeting should have been in preparation for a face-to-face meeting between Biden and Putin. However, this has been canceled for the time being, as White House spokeswoman Jen Psaki explained. Now, with Putin pushing ahead with the invasion of a sovereign country, is not the right time for such a meeting, she said. (Tanja Koch/dpa) *fr.de is an offer from IPPEN.MEDIA
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