Nord Stream has sued insurers, including Lloyd’s of London, for more than €400m (£345m ) in damages over explosions which destroyed pipelines used to carry Russian gas into Europe.
The Swiss company that operates the two Nord Stream pipelines in the Baltic Sea has filed a lawsuit at the High Court for damages related to the explosions of 2022.
The explosions in Ukraine rekindled tensions between Russia, the West and Ukraine. Countries pointed fingers at each other over who is responsible.
Danish police closed a recent investigation into suspected “sabotage”, of the pipes. They said there wasn’t enough evidence to file a criminal charge.
The German authorities have not yet closed their investigation, but the Swedish authorities have.
Both Russia and Ukraine deny responsibility for the explosion of the pipeline.
Gazprom, the Russian state-owned company that produces gas, owns a part of Nord Stream. Other owners include western energy groups such as Engie, Gasunie and E.On.
In the civil suit, filed by Nord Stream, Lloyd’s of London’s EU-based subsidiary, Lloyd’s Insurance Company and Bermudan reinsurer Arch Insurance were named as defendants.
Lloyd’s is a representative defendant, and Arch is a representative plaintiff. This means that several other firms who insured Nord Stream’s policy could be liable if damages were awarded.
A Nord Stream spokesperson confirmed that a dispute had been filed in London’s Commercial Courts between Nord Stream AG, the gas pipeline system insurers and Nord Stream AG.
We ask that you understand, however, that we cannot comment in detail on the legal proceedings.
Nord Stream, according to a legal claim first reported by Financial Times, estimates the cost to repair the pipeline and replace the lost gas inventory at up to €1.35bn.
The company is attempting to recover €400m from insurance policies.
According to the claim, one of the pipes appeared “mangled” after the blast in one area, but “appeared flat” and “to be cut” in another.
Both primary and secondary coverage was used to insure the pipeline. This means that the primary insurers had to pay for damages before secondary coverage kicked in.
Nord Stream claims, according to reports that the blasts are likely to trigger primary and secondary insurance payouts. Lloyd’s and Arch have yet to respond to the claim.
Lloyd’s spokesperson said: “Lloyd’s cannot comment on litigation or individual policies, nor is it at liberty to speak about policyholders.”
Arch Insurance has declined to comment.
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