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Washington officials fear the move will increase Moscow’s hold over the energy supplies in Europe and could even lead them to “blackmail” the rest of the world. The reported £8.4 billion (€9.4 billion) pound project funded by Gazprom and the Russian state will use the Russian-led Nord Stream 2 gas pipeline to carry gas straight to Germany under the Baltic Sea. US President Donald Trump has accused Germany of being "totally dependent" on and a "captive" of the Kremlin.

Meanwhile Richard Grenell the US ambassador in Berlin said the move “undermined the security of Europe”. The US ambassador said in a letter German newspaper Bild: “We emphasise that companies involved in Russian energy exports are taking part in something that could prompt significant risk of sanctions.” The Countering America's Adversaries Through Sanctions Act (CAATSA) adopted in 2017 targets Iran, Russia and North Korea. He added: “Firms supporting the construction of the pipelines are activity undermining the security of Ukraine and Europe.”

The US has threatened to impose sanctions on Germany

German Chancellor Angela Merkel has dismissed concerns

The pipeline which will deliver energy to northern Germany is likely to increase tensions between Russia and the Ukraine. The two waring countries has been in conflict ever since the annexation of the Crimean peninsula by Russia in 2014. The major project which has opposition from other European countries is thought to be a major threat the economy in the Ukraine as fears grow it would deprive the country of lucrative gas transit fees. The future economic impact has also been highlighted by the US who fear the project will monopolise the market in the region and with US officials stating “that any company operating in the Russian energy export pipeline sector is in danger”.

Russian president Vladimir Putin could have too much control over energy if the plans goes ahead