Munich Re Stops Insuring Nord Stream 2 Pipeline on Fears of U.S. Sanctions

February 23, 2021

A subsidiary of Germany’s Munich Re will no longer insure the Nord Stream 2 pipeline from Russia to Europe amid the fear of sanctions by the U.S. government.

The U.S. has been threatening sanctions against European companies that support construction of the $11 billion gas pipeline, and Zurich Insurance Group dropped out last month.

Related:

Future of Russia’s Nord Stream 2 Pipeline Looks Increasingly Uncertain

U.S. Warns of Sanctions on European Firms and Insurers Over Russia’s Nord Stream

“Munich Re Syndicate has issued the notice of termination to Nord Stream 2,” a spokesman said in an emailed statement on Tuesday, referring to the company’s subsidiary.

Munich Re declined to provide further details.

The pipeline is more than 90% complete and Russia’s state energy company, Gazprom, and its Western partners are hoping to finish it this year. Much of the remaining work is difficult and in deep waters off Denmark.

Nord Stream 2 declined to comment on Munich Re’s decision but said it was up to European governments and the European Commission to protect European companies from sanctions that “they have described as contrary to international law and an interference in energy policy sovereignty.”

(Reporting by Tom Sims; editing by Riham Alkousaa, Caroline Copley and Giles Elgood)

Photograph: Tugboats get into position on the Russian pipe-laying vessel “Fortuna” in the port of Wismar, Germany, in this photo taken on Thursday, Jan 14, 2021. The special vessel is being used for construction work on the German-Russian Nord Stream 2 gas pipeline in the Baltic Sea. Photo credit: Jens Buettner/dpa via AP, file.

Was this article valuable?

Here are more articles you may enjoy.