Nord Stream sues insurers for €400m over pipeline blasts
Nord Stream is suing insurers including Lloyd’s of London for more than €400m (£345m) over explosions that tore apart pipelines used to transport Russian gas to Europe.
The Swiss-based company, which operates two pipelines known as Nord Stream 1 and 2 in the Baltic Sea, has filed a claim at the High Court seeking damages over the 2022 explosions.
The blasts reignited tensions between Russia and the West amid fighting in Ukraine, as countries pointed fingers over who was responsible.
Danish police recently closed an investigation into suspected “sabotage” of the pipes, saying there was not enough evidence to bring a criminal case.
Sweden has also closed an investigation into the matter, although German authorities are still inquiring.
Russia and Ukraine have both denied responsibility for blowing up the pipeline.
Nord Stream is part-owned by Russian state-owned gas group Gazprom. The other owners are Western energy groups, including Engie, Gasunie, E.On and Wintershall Dea.
Lloyd’s of London’s EU subsidiary, Lloyd’s Insurance Company, and Bermudan reinsurer Arch Insurance are listed as defendants in the civil case, which was filed by Nord Stream last month.
Both Lloyd’s and Arch are representative defendants, meaning several more firms who underwrote Nord Stream’s insurance policy may be liable if damages are awarded.
“We can confirm that there is a contractual dispute in the Commercial Courts in London between Nord Stream AG and the insurers of the Nord Stream gas pipeline system,” a Nord Stream spokesman said.
“However, we ask for understanding that we are not in a position to provide any detailed comments to the legal proceedings.”
According to the legal claim, first reported by the Financial Times, Nord Stream estimates that the cost of repairing the pipeline and replacing the lost gas inventory is up to €1.35bn.
It is seeking to claim €400m of this back from insurance policies.
One of the pipelines looked “mangled” in one area following the blast, according to the claim, but “appeared smooth” and “to have been cut” in another area.
The pipeline was insured using both primary and secondary insurance, which means the primary insurers must pay out damages before the secondary insurance kicks in.
According to reports, Nord Stream is claiming the blasts should trigger both primary and secondary insurance payouts. Lloyd’s and Arch are yet to file their defence of the claim.
A Lloyd’s spokesman said: “Lloyd’s is not at liberty to discuss individual policies or policyholders, nor can it comment on matters in litigation.”
Arch Insurance declined to comment.