“Such sanctions are a serious interference in the internal affairs of Germany and Europe and their sovereignty. We firmly reject this,” Scholz told German broadcaster ARD in comments released on Saturday. But he rejected countermeasures.

Switzerland’s AllSeas Group SA removed vessels that were laying the last section of the pipeline connecting Russia with Germany, which was just weeks away from completion, after U.S. President Donald Trump approved sanctions targeting the project.

In anticipation of the enactment of the National Defense Authorization Act (NDAA), Allseas has suspended its Nord Stream 2 pipelay activities. Allseas will proceed, consistent with the legislation’s wind down provision and expect guidance comprising of the necessary regulatory, technical and environmental clarifications from the relevant US authority.

Europe’s imports of liquefied natural gas (LNG) have been steadily increasing since October 2018, and reached a new monthly record of 12.7 billion cubic feet per day (Bcf/d) in November 2019

Under this option, EU importers of steel, aluminum and other products with high carbon footprints would have to buy carbon allowances, as EU producers do under the EU Emissions Trading System.

Moscow says it does not want a “gas war” with Ukraine like the one in 2009 which led to supply disruptions in many European countries before the current agreement was signed.

Putin said Ukraine still had work to do to align its gas regulatory landscape with that of Europe, questioning whether Kiev would be able to achieve this in time. "That is not up to us," he said. "Therefore, the risk of termination of transit exists."

Brent was down 43 cents at $61.85 a barrel , WTI slipped 22 cents to $56.55 a barrel.

"The law implements a European compromise, in which we, together with France and the Commission and other member states played a major role," Altmaier said.

The current 10-year agreement between Gazprom and Naftogaz Ukrayiny expires at the end of 2019, and the EC is brokering talks aimed at putting a new contract in place to take effect from the start of 2020.