EU sounds alarm, urges US to coordinate on Russia sanctions

BRUSSELS (REUTERS) - The European Union sounded an alarm on Saturday (July 22) about moves in the US Congress to step up US sanctions on Russia, urging Washington to keep coordinating with its G7 partners and warning of unintended consequences.

In a statement by a spokeswoman after Republicans and Democrats in the US Congress reached a deal that could see new legislation pass, the European Commission warned of possibly"wide and indiscriminate" "unintended consequences", notably on the EU's efforts to diversify energy sources away from Russia.

Germany has already warned of possible retaliation if the United States moves to sanction firms involved with building a new Baltic pipeline for Russian gas.

EU diplomats have voiced concern that a German-US row over the pipeline and sanctions could complicate efforts in Brussels to forge an EU consensus on negotiating with Russia over the project.