NewsNord Stream sues UK insurers for $448 million over pipeline damage

Nord Stream sues UK insurers for $448 million over pipeline damage

The legal action was taken against Lloyd's Insurance Company and Arch Insurance (EU) in a London court this past February. The explosion, the cause of which remains ambiguous, is alleged to have inflicted damages estimated between $1.34 and $1.51 billion, as stated in the court documents. Nord Stream is seeking $448 million to cover various costs, including water extraction, pipeline stabilization, necessary repairs, and replacement of the gas lost, as reported by Reuters. However, the reason why the insurers have refused payment has not been disclosed.

Laying the Nord Stream 2 pipeline on the bottom of the Baltic Sea, August 2018

Images source: © Getty Images | Sean Gallup

TOS

6:44 PM EDT, March 12, 2024

Nord Stream affirmed its legal challenge against the insurance firms, underlining that the contention revolves around all-risk insurance policies and their excess equivalents. Responses from Lloyd's and Arch regarding the matter have been either non-existent or declined.

The perpetrators of the explosions remain unidentified

The Nord Stream 1 and Nord Stream 2 pipelines suffered significant damage following explosions in September 2022 within the maritime economic zones of Sweden and Denmark. Despite numerous exchanges of blame, no party has claimed responsibility for the attacks.

Danish authorities, including the police and the Danish Intelligence Service PET, concluded their investigation into the Nord Stream pipeline sabotage last month, pointing to an absence of legal basis to press charges in Denmark. Similarly, the Swedish prosecutor's office has ceased its inquiry as of early February. Meanwhile, investigations led by Germany and Poland continued independently, looking into the sabotage acts.

The Nord Stream 1 pipeline facilitated the transport of gas from Russia to Germany via the Baltic Sea. Nord Stream 2 was designed with the same intent, but it failed to secure the necessary approval after the looming threat of Russian aggression towards Ukraine was recognized.