Insurers attribute damage from Nord Stream explosions to war

International insurance companies Lloyd’s of London and Arch Insurance refuse to compensate the Nord Stream operator Nord Stream AG for damage to gas pipelines as a result of explosions. Insurers believe that the gas pipeline was damaged as a result of hostilities or sabotage, and such risks were not included in the insurance policies, reports “Kommersant”.

The insurance companies sent this basis to the High Court of London in response to Nord Stream AG’s statement of claim, the newspaper writes, citing a copy of the document.

According to an excerpt from it, the policies did not cover damage “directly or indirectly caused by, resulting from or as a consequence” of war and hostilities, the detonation of an explosive substance, as well as the use of any weapon of war or as a result of acts committed maliciously or for political reasons . Gazprom declined to comment.

The defendants also do not agree with the insurance limit of 400 million euros, which Nord Stream insists on.

Insurers believe that the maximum amount of compensation is limited to 200 million euros. The insurance companies justify their position by the fact that the damage from explosions on two strings of the Nord Stream gas pipeline constitutes one incident, since it was caused “in the same way, on the same day and at approximately the same time in approximately the same place.”

In March, the Financial Times, citing court documents reported, that Nord Stream AG filed a 400 million euro claim in a London court against Lloyd’s of London and Arch Insurance due to refusal to cover damage. The cost of restoring the gas pipeline, according to operator estimates, could exceed 1.3 billion euros.

• Three of the four strings of the Nord Stream 1 and Nord Stream 2 gas pipelines running along the bottom of the Baltic Sea from Russia were damaged in September 2022. The leaks occurred in the economic zones of Sweden and Denmark.
• Germany, Denmark and Sweden launched investigations that showed that gas pipelines had been blown up. In February 2024, Sweden stopped the investigation, and Denmark soon did the same. Germany remains the only country continuing to investigate the Nord Stream explosions in an attempt to identify those responsible. Russia is not participating in the investigation. Moscow blames the US, UK and Ukraine for what happened. They deny their involvement. The highway cannot be restored.