Nord Stream sues insurers to compensate for damage from gas pipeline explosions - Financial Times

Nord Stream is suing insurers for about 400 million euros for refusing to cover explosions on the Nord Stream 1 and Nord Stream 2 gas pipelines. This was reported by the Financial Times, UNN .

Details 

Last month, a Swiss company filed a lawsuit claiming that insurers "failed to pay" for the damage caused by underwater explosions that damaged the Nord Stream 1 and 2 gas pipelines at the bottom of the Baltic Sea.

Lloyd's of London and Arch Insurance are named as representative defendants on behalf of several insurers in the policies.

According to the documents, Nord Stream's "high-level preliminary estimate" of the costs of repairing and replacing the lost gas is between 1.2 and 1.35 billion euros.

Addendum

The case is being brought against Lloyd's of London among the insurers that provided the so-called primary policies, which cover the first losses from any event. The second defendant is a group of insurers led by Arch Insurance, a Bermuda-based unit, which provided so-called additional coverage. Such policies usually come into effect after the primary policies have been paid out.

It is noted that the claim of EUR 400 million is distributed equally between the main and excess groups. The company also claimed approximately EUR 3.7 million for damage surveys plus other expenses.

The publication adds that none of the pipelines were operating at the time of the explosion. For example, supplies through Nord Stream 1 were stopped by Russia after its invasion of Ukraine, and Nord Stream 2 never started operating after Germany canceled the approval process.    

Recall

On February 26, 2024 , the Danish police announced that they were closing the investigation into the explosions on the Nord Stream 1 and Nord Stream 2 gas pipelines in the Baltic Sea in 2022 due to insufficient evidence to initiate criminal proceedings in Denmark.