Nord Stream launches lawsuit against Lloyd’s of London insurers over pipeline sabotage
The operator of Nord Stream pipelines has launched a €400m (£341m) lawsuit in the English High Court against two insurers over sabotaged pipelines.
The multi-billion dollar Nord Stream 1 and 2 pipelines transported gas under the Baltic Sea from Russia to Germany. However, explosions ripped through the pipelines in September 2022, which sent gas prices skyrocketing.
It has yet to be established who was responsible for the explosion, but the attack was widely condemned, including by NATO, and Russia was believed to be behind the attack.
Nord Stream AG, a consortium headquartered in Switzerland, is majority owned by the Russian state-owned gas company Gazprom.
Last month, The Times reported that Russia had begun estimating repair costs, which were about $500m.
In the same month, Nord Stream AG launched a lawsuit in the High Court against a subsidiary of Lloyd’s of London, Lloyd’s Insurance Company, and speciality risk insurer Arch Insurance.
The Swiss consortium has instructed City-based law firm Herbert Smith Freehills to issue a claim against the insurers for allegedly failing to pay for damages of the pipelines after the explosion.
The parties’ particulars of claim documents stated that the estimated costs of repairing Nord Stream pipelines range between €1.2bn and €1.35bn.
The court record currently doesn’t show the insurers’ defence documents. However, it does note the parties have instructed the well-known insurance law firm Clyde and Co.
Nord Stream, Lloyd’s and Arch Insurance all declined to comment on the matter.