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December 10, 2019

New sanctions of USA aims to balance trade with the EU

USA balance tradeWith the new sanctions against Russia, Washington will try to improve the balance in trade relations with the European Union (EU). According to analysts, Donald Trump wants to reduce the serious deficit in trade relations with the community, but instead of applying new barriers, White House experts have indicated that the US could sell more liquefied gas to Europe.

According to analyzes by the International Energy Agency over the next five years, the United States will become the world’s third-largest exporter of liquefied gas.

At the moment, US gas sales to Europe are limited because of cheaper Russian gas and infrastructure connections on the continent. Since February 2016, only 1 billion cubic meters of natural gas have been delivered from USA to Europe, which just 2% of North Stream 2 planned capacity.

With the restrictions imposed on the energy business in Europe, Washington hope to open the way for liquefied gas and make it more attractive. As a source of raw material, the United States would accept it well because it would reduce Gazprom’s dominance.

North Stream 2 caused slit into the EU and probably because of these problems, the pipeline will never be built. The fact that the US dictates energy policy is annoying by Brussels. That is why today the European Commission (EC) will discuss the community’s response.

If Trump approves new sanctions, he will increase tensions in relations with the EU, Germany and other European countries. This will create another source of transatlantic friction in an area where the EU and the US can work together.

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