US Sectoral Sanctions

What's Newest (cont'd) Tightening sanctions aimed at Russia's Nord Stream 2 ("NS2") gas export pipeline Pending new "Protecting Europe's Energy Security Clarification Act" (PEESCA): comprising section 1242 (pp. 1421-1425) of draft National Defense Authorization Act for 2021 (NDAA 2021) - slightly differing Senate and House versions have been reconciled in Conference Committee as of 3 Dec. The House passed this on 8 Dec. with veto-proof majority; awaits Senate vote - and then further White House (Trump veto threat) action, etc. Will clarify/expand the anti-NS2 measures adopted in Dec. 2019 (NDAA 2020- other things, extending the reach to foreign companies that ➤ - see slides 62-63) by, among facilitate the sale, lease or provision of (in addition to selling, leasing or providing) NS2 (and TS2) pipe-laying vessels provide necessary or essential underwriting services, insurance, reinsurance for such vessels provide necessary or essential services or facilities for technological upgrades or installation of welding equipment, or retrofitting or tethering of such vessels provide necessary or essential pipeline testing, inspection or certification But there is a stated exception for EU, EU member states, Norway, Switzerland and UK gov'ts, and any gov't entity of any of them that is not operating as a business enterprise and the President may waive sanctions if he finds it is in national interest and submits such finding to Congress and required consultations with EU member states and Norway, Switzerland and UK before imposing any such sanctions These amending provisions would be effective retroactive to the NDAA 2020's Dec. 2019 in-force date NDAA 2020 (and Senator Cruz's follow-on 18 Dec. 2019 threat letter) had real effects on NS2 very much so - the undersea pipe-laying for which wasn't quite complete: the contractor Allseas immediately suspended pipe-laying and then announced that it would not resume work (and it hasn't / evidently won't) supplemented the pre-existing (and now further stiffened) CAATSA sec. 232 (see next slide and slide 53) - but aimed specifically at pipe-laying vessels and foreign persons participating in this Morgan Lewis 7

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