Nord Stream sues UK insurers over refusal to pay for pipeline damage

The lawsuit against Lloyd's Insurance Company and Arch Insurance (EU) was filed in a London court in February. The pipeline explosion, which occurred under unclear circumstances, caused, according to the lawsuit documents, damages in the range of £1.09-£1.23 billion.

As reported by Reuters, Nord Stream explains that these costs include "pumping out water, stabilizing the pipeline, conducting proper repairs, and replenishing the lost gas." And it seeks £365 million in compensation. However, the insurers have refused to pay - the reasons for the refusal are not known.

Nord Stream confirmed that it has sued the insurance companies issuing all-risk insurance policies and excess all-risk insurance policies. Lloyd's has refused to comment on the matter, and Arch has not responded to Reuters' inquiries.

The Nord Stream 1 and Nord Stream 2 pipelines were severely damaged as a result of explosions in September 2022 in the maritime economic zones of Sweden and Denmark. Despite many mutual accusations of causing the explosion, no one has admitted to the attack.

Last month, Danish police and the Danish Intelligence Service PET announced the closure of the investigation into the sabotage of the Nord Stream pipelines, citing the lack of legal grounds for initiating criminal proceedings in Denmark. The Swedish prosecutor's office also dropped its investigation at the beginning of February. Parallel investigations into the sabotage of Nord Stream are being conducted by the authorities of Germany and Poland.

Nord Stream 1 transmitted gas through the Baltic Sea from Russia to Germany. Nord Stream 2 was intended to serve the same purpose, but after the threat of Russian aggression in Ukraine became real, it did not obtain the necessary certification.