President Joe Biden believes the pipeline is a "bad deal" for Europe, his spokeswoman Jen Psaki has said, and many U.S. lawmakers are pushing for sanctions.

Some 150 km of Nord Stream 2 remains to be laid in Danish and German waters, but the threat of US sanctions against companies involved in laying the pipeline has led to long delays in its completion.

Iran, which sits on the world’s fourth-largest oil reserves, relies heavily on oil revenue, but sanctions have prevented it from pumping at anywhere near capacity since 2018.

Germany was willing to considerably increase its financial support for LNG infrastructure by up to Eur1 billion ($1.2 billion). In exchange, the US would allow the "unhindered construction and operation" of Nord Stream 2.

Germany's position is that Nord Stream 2 is a commercial project. However, Merkel expanded on her description of the pipeline, which she said she discussed openly with Macron.

Reports this week in the German press suggested the administration of new US President Joe Biden would be open to direct negotiations with Germany over the pipeline.

France's Engie is one of five European energy companies that have lent financial support to Nord Stream 2, which remains incomplete with some 150 km left to lay in Danish and German waters.

At a briefing, White House press secretary Jen Psaki said Biden "continues to believe that Nord Stream 2 is a bad deal for Europe."

Natural gas supplies to European consumers over the Nord Stream gas pipeline increased to record-breaking 59.2 bln cubic meters, Nord Stream AG, the pipeline operator, said.

The resumption of work in the Danish offshore Exclusive Economic Zone using the Fortuna comes despite US sanctions imposed Jan. 19 against both the vessel and its Russian owner, KVT-RUS.

However, Josep Borrell, the EU High Representative for Foreign Affairs, reiterated as recently as Jan. 18 that EU companies involved in the construction of the pipeline were conducting "legitimate business."

"Today, the US is imposing sanctions on the Russia-based entity KVT-RUS and identifying the vessel Fortuna as blocked property," Pompeo said in a statement.

The contracts, worth a total of $1.2 billion, were signed on Monday in the presence of Iranian Minister of Petroleum Bijan Zangeneh,

The US Senate on Jan. 1 voted to override President Donald Trump's veto of the US National Defense Authorization Act (NDAA) which includes new provisions related to Nord Stream 2 under the Protecting Europe's Energy Security Clarification Act (PEESCA).

"Nord Stream 2 confirms the resumption of pipelay works planned for Dec. 11," a project spokesman told