Swath of companies pull out of Nord Stream 2

Baker Hughes Co, AXA Group and 16 other companies have pulled out of involvement with Russia’s Nord Stream 2 natural gas pipeline, reports Reuters. According to a document the Biden administration sent to Congress last week, the companies will not now be sanctioned, however the US State Department told Congress on Friday that it had placed the Russian ship Fortuna under sanctions law.

President Biden believes the pipeline is a “bad deal” for Europe and many in the US administration say Nord Stream 2 will increase Russia’s political and economic influence over Europe.

Russia and her western partners are now rushing to complete the pipeline to bring Russian gas to Western Europe under the Baltic Sea. The $11 billion project will double existing gas capacity and bypass Ukraine, through which Russia has sent gas for decades, depriving her and other Eastern European countries of transit fees.

Ned Price, State Department spokesman, told reporters this week the fact that the companies quit with sanctions looming “demonstrates that the legislative goals and our actions are having a good effect.”