Allianz, Munich Re reportedly renew insurance of damaged Nord Stream 1 gas pipeline - media
MOSCOW. April 5 (Interfax) - German insurers Allianz and Munich Re have renewed coverage for the damaged Nord Stream 1 gas pipeline controlled by Russia, Reuters reported on Tuesday, citing five sources familiar with the matter. The sources did not rule out restoration work following the attack on the pipeline.
The insurance runs counter to Germany's public position of cutting ties with Russia, but one of the agency's sources said that the German government did not oppose the coverage. Most western investors have written off their stakes in the pipeline.
"Munich Re, Alliance and Germany's chancellery declined to comment, while the economy ministry said insurance was not part of the support the government had in the past provided for the pipeline," the agency said.
Reuters reported two of its sources as saying separately that some of Nord Stream's German shareholders want to at least preserve the damaged pipeline in case relations with Moscow improve.
Berlin is tolerant toward such an approach to the infrastructure despite having said that energy ties with Russia have been severed, one of the sources said.
The insurance policy covers damage to the pipeline and business interruption issues, one of the sources said. Having insurance coverage would facilitate repair work needed to resume gas supplies across the Baltic Sea to Europe, the agency said.
All of the insurance industry and trade sources declined to be named.
While imports of Russian crude oil and oil products are banned under European Union sanctions, imports of Russian gas are allowed, although the West is trying to find alternatives, Reuters said.
Russia owns 51% of Nord Stream 1 through a subsidiary of state gas giant Gazprom . Gazprom is subject to sanctions imposed by the United Kingdom, Canada and the United States, and some EU restrictions, Reuters said.
Other insurers
Prior to the beginning of Russia's military operation in Ukraine last February, Nord Stream 1 was insured by several European companies, including some from the Lloyd's of London market, Reuters reported its sources as saying. Some Lloyd's insurers cut insurance arrangements that came up for renewal in late 2022, in part due to UK sanctions against a company with ties to Gazprom, industry sources familiar with the situation said.
Three of the Lloyd's syndicates previously involved in the insurance are unlikely to renew coverage, three industry sources told the agency. But a fourth source said its underwriting syndicate from the Lloyd's market continued to provide insurance for the project. All the sources declined to provide more details.
Lloyd's of London declined to comment, Reuters said.
The insurance policy for Nord Stream 1 was a two-year contract that was renewed after the first year, one of the agency's sources said. However, policyholders and insurers can terminate such a contract after the first year if the terms allow, Reuters said, citing two industry sources.
It is unclear if Zurich is involved in the new insurance coverage for the pipeline, Reuters said. The Swiss insurance company, which one of the agency's five sources said was one of the pipeline's insurers when the damage occurred, declined to comment, Reuters said.