Munich Re, following Allianz, refused to renew Nord Stream 1 insurance

Germany’s Munich Re, one of Nord Stream 1’s main insurers, has no plans to renew the pipeline’s insurance policy after it expires at the end of 2023. An unnamed company spokesperson told the agency. Reuters. Previously, a similar decision was reported by a German company Allianz.

April, 4 Reuters citing sources, he reported that Allianz and Munich Re had renewed contracts for the damaged Nord Stream gas pipeline. At the same time, Germany officially announced its intention to completely abandon the supply of Russian energy carriers. However, according to the agency, the German authorities did not object to the extension of the pipeline’s insurance coverage.

The next day, April 5, Allianz said it had no plans to renew coverage. The company said that they signed contracts before the start of hostilities in Ukraine.

As reported Reuters in October 2022, if the Nord Stream insurance companies refuse to renew the policy, the prospects for the restoration of the pipeline become less likely.

51% of Nord Stream is owned by the Russian Gazprom. The remaining shares are divided between four European companies – the German E.ON and Wintershall Dea (they own 15.5% each), the French Engie (9%) and the Dutch Gasunie (9%). These four operators are provided with insurance services by Munich Re and Allianz. At least two other insurance companies – Zurich Insurance Group and Paris-based Axa Group – withdrew from the project in early 2023.

Nord Stream 1 and the unlaunched Nord Stream 2 were damaged by explosions on September 26, 2022. To date, it is officially unknown who was involved in the explosions.

The insurance policy covers the damage caused by the explosion of the pipeline, as well as the costs associated with the interruption of supplies. At the same time, Nord Stream insurance companies may refuse to provide services if the damage to the pipeline was the result of sabotage by the state. Such cases are not covered by insurance.

Lusine Balasyan