Sanctions on Russian Entity and a Vessel Engaging in the Construction of Nord Stream 2
PRESS STATEMENT
JANUARY 19, 2021
Today, the United States is imposing sanctions on the Russia-based entity KVT-RUS and identifying the vessel FORTUNA as blocked property. KVT-RUS is being sanctioned pursuant to Section 232 of the Countering America’s Adversaries Through Sanctions Act (CAATSA) for knowingly selling, leasing, or providing to the Russian Federation goods, services, technology, information, or support for the construction of Russian energy export pipelines. The United States will consider further actions in the near term, under CAATSA, and the Protecting European Energy Security Act (PEESA), as amended.
Nord Stream 2, if completed, would give Russia the means to completely bypass Ukraine, depriving Ukraine of vital revenues and opening it up to further Russian aggressive actions, while providing the means to use natural resources as a tool...
1) For the criteria we normally use to determine what designation notices to include in the Research System, see Introductory Note Common to all Derivative Designation Notices Included in the Research System.
In this case, the entity sanctioned is of the country (Russia) that is the target of the sanctions provision at issue, so this designation announcement would normally be excluded from the Research System. Here, however, it is notable as the first enforcement action related to the Nord Stream 2 pipeline that is the subject to PEESA.
In this case, however, the designation was made pursuant to CAATSA, Sec. 232, which authorizes sanctions on persons that sell, “to the Russian Federation, for the construction of Russian energy export pipelines,” goods or services of which the...