Subsidiary of Russian Gazprom spends nearly $1 million on lobbyists in the US
Between July and September, the Swiss company Nord Stream 2, which is planning the construction of the Nord Stream 2 gas pipeline from the Russian coast to Germany, spent at least $880 000 on lobbying their own interests in Washington with respect to the implementation of the project under the new US sanctions, RBC reports. Nord Stream 2, which is 100% owned by Gazprom, approached three lobbying firms, making contracts with them in July, before US President Donald Trump signed CAATSA, the new law on sanctions.
The firm Capitol Counsel received $150 000 from Gazprom, Hawksbill Group - $80 000, and Roberti Global $650 000, according to the discovery of Nord Stream 2 in the database on lobbyist activity in the US Senate. The Nord Stream 2 contract with Roberti Global was the second most expensive in the third quarter, after Qualcomm’s chip production contract with Covington & Burling, Politico calculated. The contract with Capitol Counsel was terminated.
Nord Stream 2 gave the firms the task of lobbying “matters related to the US’s position on the Nord Stream 2 gas pipeline, including the effect of potential financial sanctions on the project”. The act signed by Trump on 2 August, which expands significantly on the sanctions against Russia, includes an article which threatens Nord Stream 2 and other gas pipeline projects involving Russian energy carriers.
According to the act, the US president, in coordination with America’s allies, could introduce a ban on significant involvement in Russian projects to export hydrocarbons. The act threatens to impose sanctions on companies from any jurisdiction who invest funds in Russian projects to export energy resources through pipelines, or provide such projects with goods, technology or services.
Roberti Global is lobbying the interests of North Stream 2 in the Senate and in the US House of Representatives, and has also hired a subcontractor – SMW Partners – to lobby in the Executive Office of the President on behalf of Nord Stream 2.
RBC reports that a spokesperson for Nord Stream 2 affirmed that the mentioned companies had been hired for the sake of “adequate lobbyist efforts in Washington”. “It’s important for the American legislators and interested parties to be correctly informed about the Nord Stream 2 project and its significance for Europe,” the Nord Stream 2 spokesperson said. “This activity is no different from the communication which is done in the interests of other companies, organizations and governments,” he specified.
According to him, the company Nord Stream 2 “is aware of the discussion surrounding the implementation of the new sanctions act, and stands in solidarity with many voices in Europe who are concerned by the unforeseen consequences which certain provisions of the act may entail for European consumers and business”. The gas pipeline “will provide an additional reliable source of gas for Europe, facilitating thousands of jobs for Europeans and stimulating investment in the economies of many European states,” the spokesperson emphasized.
Nord Stream 2 proposes the construction of two gas pipelines from the Russian coast, through the Baltic sea, to Germany. The project will be funded by the construction operator Nord Stream 2 AG (whose sole shareholder is Gazprom) and five European partners – Shell, OMV, Engine, Uniper and Wintershall. Gazprom will provide 50% of the production budget, the other partners will provide 10% each.
According to the relevant EU database, Nord Stream 2 also has lobbyists in the EU. The company’s annual budget for lobbying in Europe is €400-500 000, and an additional €200-400 000 which it pays annually to external lobbyists.