News

CLIENT ALERT: THE U.S. PASSES ADDITIONAL SANCTION PROVISIONS TARGETING THE CONSTRUCTION OF NORD STREAM 2 AND TURK STREAM 2 PIPELINES

January 4, 2021

Last week, the United States Senate and House of Representatives voted to override President Trump’s veto and passed the National Defense Authorization Act (NDAA) for year 2021. 

Section 1242 of NDAA 2021 contains the Protecting Europe’s Energy Security Clarification Act (PEESCA). PEESCA authorizes the imposition of sanctions against persons/entities involved in specified activities related to construction of the Nord Stream 2 (NS2) and second line of TurkStream (TS2) pipeline projects. When completed, those projects will transport natural gas from Russia to Europe. The activities targeted in PEESCA include vessel-related transactions for construction of the pipelines and the provision of insurance to such vessels. With the passage of NDAA 2021, PEESCA has also become law.

To read the full Client Alert, click HERE.