Washington, Feb. 23 (Reuters) – The United States on Wednesday imposed sanctions on a company responsible for laying Russia’s North Stream 2 gas pipeline and extended sanctions against Moscow after recognizing two divisions in eastern Ukraine.

Sanctions against Nortstream 2AG and its CEO, Matthias Warnick, are increasing pressure on the Baltic Sea project, which is designed to double gas from Russia to Germany.

Nord Stream 2, Europe’s most divisive energy project, has not yet begun work on certification pending in Germany and the European Union.

Germany closed a $ 11 billion pipeline on Tuesday, citing Russia’s operations in Ukraine. The United States and the European Union are concerned that the pipeline project will increase Europe’s dependence on Russia’s energy supply, deny transport to Ukraine, and create a new Russian gas pipeline.

In a statement on Wednesday, US President Joe Biden said his administration was closely coordinating the Nord Stream 2 operation with Germany: “Today I have instructed my government to impose sanctions on Nord Stream 2 AG and its business leaders.”

Biden added: “These actions are another setback in our response to Russia’s action in Ukraine. As I have made clear, if Russia continues to intensify, we will not hesitate to take the next step.

Until March 2, the U.S. Treasury Department had issued a public license authorizing the termination of transactions with Nord Stream 2 AG.

Gerhard Schrder, a close friend of former Russian President Vladimir Putin and former German President Vladimir Putin, who has headed Nordstream’s partner group since 2005, has not been affected by the sanctions.

Nord Stream 2 AG is a registered Swiss company whose parent company is Gazprom, the Russian state gas company. Gosprom owns the entire pipeline, but pays half the cost, sharing the rest with Shell and Austria’s OMV. (OMVV.VI)NG of France and Unipur of Germany (UN01.DE) And Wintershall DEA [RIC:RIC:WINT.UL]⁇

Report by Jeff Mason, Kanishka Singh and Daphne Saladkis; Edited by Toina Siaku, Sisu Nomiyama and Howard Koller

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