Trade policy should not be mixed with sanctions

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Criticism of US bill Trade policy should not be mixed with sanctions

The German government has criticised a US Senate bill regarding sanctions on Russia. It is an "unusual course of action" remarked federal government spokesperson Steffen Seibert.

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Steel pipes for the Nord Stream 2 Baltic pipeline wait at Mukran harbour on the island ofl Rügen.

Pipes for the Nord Stream 2 pipeline, which is to bring Russian gas to Europe

Photo: picture alliance / Stefan Sauer

The German government rejects extraterritorial sanctions, that is sanctions that impact on third states, as a matter of principle.

It is rather disconcerting, said government spokesperson Steffen Seibert in Berlin, that American sanctions, purportedly to sanction Russia’s actions, should target European business. That cannot be correct.

Foreign-policy interests should not be confused with economic interests

Chancellor Angela Merkel shares the concerns of Federal Foreign Minister Sigmar Gabriel and the Austrian Chancellor Christian Kern. On Thursday, they responded to the adoption of the bill by the US Senate with a joint declaration.

Steffen Seibert stated unequivocally, "The Chancellor believes that economic-policy interests and sanctions should not be confused." Federal Foreign Office spokesperson Martin Schäfer declared, "With the planned change in sanctions legislation, the Americans give themselves the right to impose American sanctions on third parties, in this case German, Austrian and other European businesses, if they behave in a way that America believes to be worthy of sanctions."

The aim is not to move Russia to change its course of action. It is all about the economic interests of the USA. This is new and gives grounds for the absolutely serious criticism voiced by Federal Foreign Minister Sigmar Gabriel and the Austrian Chancellor in their declaration, said Martin Schäfer.

Bill might well contravene international law

Should the bill come into effect, as it has now been adopted by the American Senate "we would consider it to contravene international law" said Martin Schäfer. With this law, the American government could impose sanctions on German and European companies. In this specific instance it would hit companies that are in some way involved with the construction, financing or operating of pipeline systems.

In the joint declaration, Federal Foreign Minister Sigmar Gabriel underlined that there is still enough time and opportunity to prevent this.

United approach on the part of transatlantic partners

"We now have a new situation. For three and a half years we have genuinely pulled together. We have always ensured that we adopt a united European stance, which was then coordinated with our American partners and resulted in parallel steps, recalled Martin Schäfer.

This bill changes the situation. The motive behind the sanctions on Russia is no longer the annexation of Crimea or Russia’s involvement in eastern Ukraine. It is the alleged or actual influence of Russia on the American presidential election. That is quite candidly stated as a motivation behind the bill. This is probably why the US Senate has not coordinated closely with Germany, as has otherwise been common practice regarding sanctions on Russia, said Martin Schäfer.

Government spokesperson Steffen Seibert stressed that united coordinated action based on partnership between Europe and the USA is very valuable. "That was important over the last three years and it is still important."

German government intends to continue Normandy format meetings

The government spokesperson reminded his audience of Chancellor Angela Merkel’s meeting with the French President Emmanuel Macron in May, and the meeting with Russian President Vladimir Putin in Sochi. An agreement was reached to retain and develop the tried and tested Normandy format on the basis of the Minsk agreements.