Tuesday, June 6, 2023
HomeInsurance LawAfter Allianz, Munich Re to withdraw cowl for Nord Stream 1 pipeline

After Allianz, Munich Re to withdraw cowl for Nord Stream 1 pipeline

German firm Munich Re doesn’t plan to increase reinsurance for the Nord Stream 1 pipeline after it expires later in 2023, reported Reuters.

Munich Re didn’t elaborate on the choice.

The information comes after Allianz mentioned final week that it additionally doesn’t plan to resume protection of the pipeline, which runs throughout the Baltic Sea from Russia to Germany.

In a press release on its web site, Allianz mentioned: “The coverage will expire in late 2023, isn’t presently up for renewal, and Allianz doesn’t intend to resume this coverage.

“This coverage was underwritten earlier than the Russian invasion of Ukraine for a two-year interval and we’re below contractual obligation to our policyholders topic to all sanctions.”

Earlier, sources informed the information company that Munich Re and Allianz have been among the many European insurance coverage firms which have renewed protection for the Russian-controlled pipeline.

Based on one of many sources, the insurance coverage covers injury to the pipeline and points inflicting interruption to the enterprise.

Moreover, having insurance coverage would make it simpler for any repairs to be made to proceed fuel shipments to Europe throughout the Baltic Sea.

European Union (EU) sanctions prohibit the import of Russian crude oil and oil merchandise, whereas Russian fuel imports are permitted.

Final September, Nord Stream 1 and Nord Stream 2, that are essential to Europe’s power safety, have been broken as a consequence of a number of explosions.



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