WORLD NEWS | Fri Jun 16, 2017 | 12:38pm EDT

Germany threatens retaliation if U.S. sanctions harm its firms

By Gernot Heller and Alissa de Carbonnel | BERLIN/BRUSSELS

Germany threatened on Friday to retaliate against the United States if new sanctions on Russia being proposed by the U.S. Senate end up penalizing German firms.

The Senate bill, approved on Thursday by a margin of 98-2, includes new sanctions against Russia and Iran. Crucially, it foresees punitive measures against entities that provide material support to Russia in building energy export pipelines.

Berlin fears that could pave the way for fines against German and European firms involved in Nord Stream 2, a project to build a pipeline carrying Russian gas across the Baltic.

Among the European companies involved in the project are German oil and gas group Wintershall, German energy trading firm Uniper, Royal Dutch Shell, Austria’s OMV and France’s Engie.

German Chancellor Angela Merkel's spokesman described the Senate bill, which must be approved by the House of Representatives and signed by President Donald Trump before it becomes law, as "a peculiar move".

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