Nord Stream Seeks Over €400 Million from London Insurers for 2022 Pipeline Ruptures

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Nord Stream Seeks Over €400 Million from London Insurers for 2022 Pipeline Ruptures

Close-up on Euro notes (© Shutterstock/Valentin Si)
Close-up on Euro notes (© Shutterstock/Valentin Si)

Nord Stream AG, the operator of pipelines that transported Russian natural gas to Europe, is suing its insurers for more than €400 million ($436 million) over explosions in September 2022 that ruptured the pipelines.

As reported by Reuters news on Tuesday, March 12, the court filings submitted in London's High Court last month show Nord Stream is suing Lloyd's Insurance Company and Arch Insurance (EU) DAC for failing to cover the damages. 

The company estimates the total cost of repair and gas replacement to be between €1.2 billion ($1.3 billion) and €1.35 billion ($1.48 billion).

According to the lawsuit, the explosions caused significant damage to the pipelines, with one section appearing "mangled and deformed" and another "smooth and cut."

The lawsuit focuses on the blasts that ruptured both the operational Nord Stream 1 pipeline and the never-activated Nord Stream 2. 

Investigations by Sweden and Germany found traces of explosives at the blast sites, suggesting a deliberate act. However, no one has claimed responsibility, and Russia and the West have traded accusations.

Nord Stream is suing all insurers involved in its offshore operating and excess all-risk policies. Court documents show the company is suing Lloyd's directly and as a representative for other insurers, including Munich Re.

Neither Lloyd's nor Arch Insurance responded to requests for comment. Nord Stream confirmed the legal action but declined to comment further, citing ongoing proceedings.

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