• Home
  • News
  • Fortune 500
  • Tech
  • Finance
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Leadership

Why Europe Is Furious Over Congress’s Russia Sanctions

By
Geoffrey Smith
Geoffrey Smith
Down Arrow Button Icon
By
Geoffrey Smith
Geoffrey Smith
Down Arrow Button Icon
August 21, 2017, 10:00 AM ET

What is the point of the U.S.’s latest sanctions on Russia? A) To contain Vladimir Putin? B) To contain Donald Trump? Or C) To lever Russian natural gas out of Europe’s energy market in order to let U.S. gas in? Congress may say A (and think B), but Europeans are steaming mad about C.

The bill enables (but doesn’t oblige) Trump to throttle Russia’s oil and gas export pipelines, the arteries that carry its economy’s lifeblood. If that happened, U.S. companies would be the biggest beneficiaries. Right now, liquefied natural gas exported from Louisiana can’t compete with Russia on price, but that could change if the sanctions threat makes it too risky to ship Russian product.

The US sanctions against Russia could boost prices of natural gas for Germany and the EU.Photo, Trump: Sean Gallup—Getty Images; Merkel: Florian Gaertner—Photothek via Getty Images; Putin: Mikhail Svetlov—Getty Images
Photo, Trump: Sean Gallup—Getty Images; Merkel: Florian Gaertner—Photothek via Getty Images; Putin: Mikhail Svetlov—Getty Images

German Chancellor Angela Merkel and her government have blasted the plans, as have the European companies building the so-called Nord Stream 2 gas pipeline from Russia to Germany, under the Baltic Sea. Rem Korteweg, an analyst with think tank Clingendael, says Nord Stream should be stopped anyway, as it increases EU dependency on Russia, which already satisfies some 30% of EU gas needs. But Germany in particular seems unlikely to forgive Trump for acting in Europe’s best interests—however unintentionally.

A version of this article appears in the Sept. 1, 2017 issue of Fortune with the headline “Europe Fumes Over Russian Gas.”

About the Author
By Geoffrey Smith
See full bioRight Arrow Button Icon
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.