Insurers suggest ‘government’ possibly have ruined Nord Stream
Date
4/23/2024 2:59:30 AM
(MENAFN) A contentious legal battle has unfolded regarding insurance coverage for the Nord Stream gas pipelines following acts of sabotage in 2022. Reports from Russian newspaper Kommersant indicate that insurance policies held by Nord Stream AG, the operator of the pipelines, do not provide coverage for damages incurred during military hostilities. The revelation comes amidst a claim filed at the High Court in London by major Western insurers, including Lloyd’s of London and Arch Insurance.
The dispute stems from Nord Stream AG's assertion that insurers have failed to compensate approximately EUR400 million (USD438 million) for damages resulting from explosions at the pipelines. With estimates suggesting a total repair cost exceeding EUR1.2 billion, tensions have escalated as insurers argue that damages caused by the Russia-Ukraine conflict fall outside the scope of coverage.
According to the insurers, losses directly or indirectly related to war, invasion, hostilities, or military actions are explicitly excluded from the insurance policies. They contend that the ongoing conflict between Russia and Ukraine satisfies these criteria, thus absolving them of liability for the damages. Moreover, insurers have raised the possibility that the sabotage may have been orchestrated by a government entity, further complicating the assessment of coverage.
Russian Foreign Ministry spokeswoman Maria Zakharova has weighed in on the matter, expressing skepticism over the intentions of Western insurance companies. Zakharova highlighted a pattern of perceived hostile actions towards Russia, including asset seizures and threats to civilian infrastructure. The refusal to honor insurance liabilities adds fuel to existing tensions and exacerbates diplomatic strains between Russia and Western nations.
The dispute over insurance coverage for the Nord Stream pipelines underscores the intersection of geopolitics, energy security, and legal intricacies. As parties involved navigate the complexities of international relations and legal frameworks, the outcome of the legal proceedings will have significant implications for the energy sector and bilateral relations between Russia and Western countries.
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