Nord Stream Pipeline Blasts Tied to War, Insurers Say in $580-Million Claim Fight

Insurers are arguing the Nord Stream pipeline blasts were war-related in a $580 million dispute, a case that could shape how major energy infrastructure risks are covered.

(Reuters) — Insurers are arguing that the 2022 Nord Stream pipeline explosions were a direct result of the Ukraine war as they seek to avoid paying nearly €580 million ($684 million) in damages.

Nord Stream is pursuing compensation from insurers including Lloyd’s and Arch Insurance following the blasts that ruptured the offshore gas pipelines in the Baltic Sea, severely curtailing Russian gas flows to Europe.

The insurers contend the damage falls under policy exclusions related to acts of war or state involvement. In court filings, their legal team said the explosions were likely carried out by state or state-backed actors, though responsibility has not been definitively established.

The case, now being heard in London’s High Court, centers on whether the pipeline damage can be legally attributed to war-related activity.

Investigations into the blasts are ongoing, with European authorities continuing to examine possible links to state actors.