The two pieces of legislation concerned are the Countering America’s Adversaries Through Sanctions Act (CAATSA), and the Protecting Europe’s Energy Security Act (PEESA). The Club notes that amendments to PEESA have now been agreed by US Congress.
It is highlighted that PEESA authorizes the sanctions against vessels that engage in pipe-laying or pipe-laying activities. Pipe-laying activities are defined as meaning “activities that facilitate pipe-laying, including site preparation, trenching, surveying, placing rocks, backfilling, stringing, bending, welding, coating and lowering of pipe.”
In addition, PEESA states that sanctions are to be implemented against foreign persons and entities who are determined to have knowingly:
- sold, leased, or provided, or facilitated selling, leasing, or providing, those vessels for the construction of such a project;
- facilitated deceptive or structured transactions to provide those vessels for the construction of such a project;
- provided for those vessels underwriting services or insurance or reinsurance necessary or essential for the completion of such a project;
- provided services or facilities for technology upgrades or installation of welding equipment for, or retrofitting or tethering of, those vessels if the services or facilities are necessary or essential for the completion of such a project; or
- provided services for the testing, inspection, or certification necessary or essential for the completion or operation of the Nord Stream 2 pipeline.