Nord Stream Blasts Due to War, Say Insurers Seeking to Avoid Pay Out

The Nord Stream gas pipelines were attacked in 2022 as a direct result of Russia’s invasion of Ukraine, insurers told a London court on Thursday as they seek to avoid paying out nearly 580 million euros ($684 million) over blasts that hit the pipelines.

Nord Stream is suing Lloyd’s and Arch Insurance over explosions in September 2022 that ruptured pipelines carrying Russian gas under the Baltic Sea to Germany.

The explosions – for which no state has taken responsibility – largely severed Russian gas supplies to Europe, marking a major escalation in the conflict and squeezing energy supplies.

Related: Nord Stream Insurers Deny Policies Covered War Risks In UK Lawsuit

Two Ukrainians have been arrested in Italy and Poland respectively at the request of German prosecutors after traces of explosives were found on a boat linked to the blasts.

Russia has accused Ukraine of being behind the attack, but Kyiv has repeatedly denied any involvement.

Switzerland-based Nord Stream’s lawsuit centers on damage to the Nord Stream 1 pipelines and argues it is entitled to an indemnity of just under 580 million euros.

Insurers Fight Lawsuit Over 2022 Explosions

Lawyers representing Lloyd’s and Arch say Nord Stream’s insurance policy excludes damage caused by war or under the order of any government.

The insurers’ lawyer, Simon Salzedo, said in court documents that geopolitical experts agreed the blasts could only have been carried out by state actors from Ukraine, Russia or the U.S., or “sub-state actors” from Ukraine with state help.

The trial at London’s High Court will see the insurers seek to show that the 2022 explosions were linked to the Ukraine war or ordered by a state.

Investigators in Germany and Sweden have spent years trying to establish responsibility. Italy extradited a Ukrainian national to Germany last year, but a Polish court refused to extradite a second suspect.

Salzedo said the insurers did not need to prove who carried out the attack or why, but only that it is more likely than not a state was involved or that the blasts were influenced by the Ukraine war.

Nord Stream’s lawyers said no expert could identify which government, if any, was responsible and that “the only presently established fact is that the Ukrainian state … has repeatedly and specifically denied any involvement.”

($1 = 0.8475 euros)

(Reporting by Tobin; Editing by Mark Potter)