German insurers renew cover for blast-damaged Nord Stream gas link

 

Insurance by two of Germany's biggest companies is critical for any long-term future of the pipeline, which was the main route for Russian gas to Europe for a decade before the blast last September, Reuters reports.

 

The insurance stands in contrast to Germany's public stance of severing ties with Moscow, but one of the five sources said the German government had not opposed the cover. Most Western investors have written off their stakes in the pipeline.

 

Russia has a 51% stake in Nord Stream 1 through a subsidiary of the state-owned energy group Gazprom.

Some of Nord Stream's German shareholders favour at least preserving the damaged pipeline in case relations with Moscow improve, two people familiar with the matter said separately.

One of the people said that Berlin tolerated such an approach to the infrastructure, even though it has said that energy ties with Russia are severed.

ll of the insurance industry and trade sources declined to be named because of the sensitivity of the issue.

The insurance policy covers damage to the pipeline and business interruption issues, one of the sources said.

Having insurance would also facilitate any repair work needed to resume gas supplies under the Baltic Sea to Europe.

While the import of Russian crude oil and oil products is banned under European Union (EU) sanctions, Russian gas imports are allowed. The West, however, is trying to find alternatives.