“Nord Streams” are insured abroad
The “Nord Stream” and “Nord Stream 2” pipelines, which experienced an emergency with a gas leak, were insured by foreign companies, but the terms of insurance are unknown.
On Monday, incidents occurred simultaneously on two Russian export gas pipelines to Europe. According to information from the Danish and Swedish authorities, two gas leaks were discovered at “Nord Stream” and one at “Nord Stream 2” near Bornholm Island. Germany, Denmark and Sweden do not rule out targeted sabotage. So, according to seismologists, two shocks similar to explosions were recorded in the area of gas leaks from Nord Stream on Monday. The operator of “Nord Stream”, Nord Stream AG, reported that the state of emergency on gas pipelines was unprecedented and it was impossible to estimate the timing of repairs.
“Nord Stream” is an international consortium. The pipelines were insured by foreign companies, but the terms of the insurance are unknown,” one source told RIA Novosti.
“But for sure, military risks could not be included in the coverage, and now this is being considered as one of the versions. Most likely, the insurer will postpone payment until the end of the investigation, and, according to the press, in the current conditions it can stretch for years, ”said the second source, adding that military risks and sabotage from the point of view of insurance can be considered as different risks and be a reason to deny payments if one of the risks is not covered.
If the event falls under the insurance contract, then the insurance company will first make a payment (in this case, it is a loss in property and liability for damage to the environment), and then, if the guilty party is found, the insurer will set recourse claims against it.
“If the event is not covered by the terms of the insurance contract, then all damage will be compensated at the expense of the operator / owner of the pipeline. And then he himself will look for the guilty party and try to recover damages from the guilty party,” she adds.
The work of “Nord Stream” has been suspended since the end of August due to problems with the repair of Siemens turbines caused by Western sanctions. However, the pipeline remained filled with gas. “Nord Stream 2”, completed in 2021 but never put into operation, was also already filled with gas, writes Prime.