[Federal Register Volume 85, Number 215 (Thursday, November 5, 2020)]
[Notices]
[Pages 70702-70703]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-24579]


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DEPARTMENT OF STATE

[Public Notice 11236]


Notice of Department of State Public Guidance for the Protecting 
Europe's Energy Security Act (PEESA)

ACTION: Notice.

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SUMMARY: The Department of State is issuing public guidance for PEESA 
on October 20, 2020 to take an expansive interpretation of the 
available authorities under PEESA by issuing clarifying public guidance 
and FAQs on the term ``provided those vessels for the construction of 
such a project'' under Section 7503(a)(1)(B) of PEESA.

DATES: The public guidance for PEESA is effective on October 20, 2020.

ADDRESSES: The Department of State has published the public guidance 
for PEESA on its website.https://www.state.gov/protecting-europes-energy-security-act-peesa/

[[Page 70703]]


FOR FURTHER INFORMATION CONTACT: Stu Huffman at 
[email protected] or (202)-647-7201.

SUPPLEMENTARY INFORMATION:

PEESA Public Guidance

    The Department of State is committed to fully implementing 
sanctions authorities in the Protecting Europe's Energy Security Act of 
2019 (``PEESA'' or ``the Act,'' Title LXXV, National Defense 
Authorization Act for Fiscal Year 2020, Public Law 116-92). We continue 
to call on Russia to cease using its energy resources for coercive 
purposes. Russia uses its energy export pipelines to create national 
and regional dependencies on Russian energy supplies, leveraging these 
dependencies to expand its political, economic, and military influence, 
weaken European security, and undermine U.S. national security and 
foreign policy interests. These pipelines also reduce European energy 
diversification, and hence weaken European energy security.
    PEESA provides the United States with the authority to advance U.S. 
national security and foreign policy objectives, in particular, to 
address Russian pipeline projects that create risks to U.S. national 
security, threaten Europe's energy security, and consequently, endanger 
Europe's political and economic welfare.
    In accordance with PEESA Section 7503, the Secretary of State, in 
consultation with the Secretary of the Treasury, is to submit a report 
to Congress for the relevant period, identifying (A) vessels that 
engaged in pipe-laying at depths of 100 feet or more below sea level 
for the construction of the Nord Stream 2 pipeline project, the 
TurkStream pipeline project, or any project that is a successor to 
either such project; and (B) foreign persons that the Secretary of 
State, in consultation with the Secretary of the Treasury, determines 
have knowingly sold, leased or provided those vessels for the 
construction of such a project; or facilitated deceptive or structured 
transactions to provide those vessels for the construction of such a 
project.

Frequently Asked Questions

1. How does the State Department interpret the term knowingly 
``provide[d] those vessels for the construction of such a project'' in 
PEESA Section 7503(a)(1)(B)?

    For the purposes of PEESA, which focuses on vessels engaged in 
pipe-laying at depths of 100 feet or more below sea level for the 
construction of the Nord Stream 2 pipeline project, the TurkStream 
pipeline project, or any project that is a successor to either such 
project (see Section 7503(a)(1)(A)), the phrase knowingly ``provide[d] 
those vessels for the construction of such a project'' in Section 
7503(a)(1)(B) may cover foreign firms or persons who provide certain 
services or goods that are necessary or essential to the provision or 
operation of a vessel engaged in the process of pipe-laying for such 
projects. Such activities subject to sanctions pursuant to PEESA or 
other authorities may include, but are not limited to, providing 
services or facilities for upgrades or installation of equipment for 
those vessels, or funding for upgrades or installation of equipment for 
those vessels. The Department of State and the Department of the 
Treasury are prepared to use the full range of sanctions authorities to 
halt construction of these pipelines.
    Pursuant to section 7503(e)(3) of PEESA, sanctions will not apply 
to persons providing provisions to a relevant vessel if such provisions 
are intended for the safety and care of the crew aboard the vessel, the 
protection of human life aboard the vessel, or the maintenance of the 
vessel to avoid any environmental or other significant damage.
    Pursuant to section 7503(e)(4) of PEESA, sanctions will not apply 
to persons engaging in activities necessary for or related to the 
repair or maintenance of, or environmental remediation with respect to, 
Nord Stream 2, TurkStream, or any project that is a successor to either 
such project.

2. Will the United States impose sanctions on persons engaged in 
certain activities prior to the issuance of this clarification of the 
term ``provided?''

    No, the United States will not impose sanctions on persons that the 
Secretary of State, in consultation with the Secretary of the Treasury, 
determines, on or after October 20, 2020 meet the above criteria for 
having knowingly ``provided those vessels for the construction of such 
a project'' under Section 7503(a)(1)(B) of PEESA, if those persons 
immediately engage in, and complete within 30 days, a good-faith wind 
down of such activities upon the issuance of this clarification.

Melissa M. Simpson,
Deputy Assistant Secretary, Bureau of Energy Resources, Department of 
State.

[FR Doc. 2020-24579 Filed 11-4-20; 8:45 am]
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